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What changed in SiriusPoint Ltd's 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of SiriusPoint Ltd's 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+563 added−601 removedSource: 10-K (2025-02-21) vs 10-K (2024-02-29)

Top changes in SiriusPoint Ltd's 2024 10-K

563 paragraphs added · 601 removed · 411 edited across 9 sections

Item 1. Business

Business — how the company describes what it does

127 edited+61 added−67 removed179 unchanged
Biggest changeWithin our segments, we underwrite a variety of insurance and reinsurance products as shown in the table below. 6 The following table pro vides a breakdown by line and type of business of gross premiums written and net premiums earned for the years ended December 31, 2023 and 2022: 2023 2022 Amount Percentage of Total Amount Percentage of Total Gross premiums written ($ in millions) Casualty $ 551.7 16.1 % $ 485.0 14.2 % Specialty 437.2 12.8 % 447.0 13.1 % Property Other 117.8 3.4 % 328.7 9.6 % Property Catastrophe 164.3 4.8 % 260.3 7.6 % Other — — % 0.4 — % Reinsurance 1,271.0 37.1 % 1,521.4 44.5 % A&H 844.7 24.6 % 858.8 25.2 % Casualty 831.3 24.3 % 759.1 22.3 % Specialty 281.2 8.2 % 241.6 7.1 % Property Other 73.3 2.1 % 20.8 0.7 % Property Catastrophe 9.2 0.3 % 3.9 0.1 % Insurance & Services 2,039.7 59.5 % 1,884.2 55.4 % Core 3,310.7 96.6 % 3,405.6 99.9 % Corporate (1) 116.7 3.4 % 4.1 0.1 % Total gross premiums written $ 3,427.4 100.0 % $ 3,409.7 100.0 % 2023 2022 Amount Percentage of Total Amount Percentage of Total Net premiums earned ($ in millions) Casualty $ 539.2 22.2 % $ 513.4 22.1 % Specialty 283.9 11.7 % 317.4 13.7 % Property Other 120.0 5.0 % 257.7 11.1 % Property Catastrophe 88.3 3.6 % 124.2 5.4 % Other — — % 0.4 — % Reinsurance 1,031.4 42.5 % 1,213.1 52.3 % A&H 649.6 26.8 % 603.1 26.1 % Casualty 382.7 15.8 % 316.3 13.6 % Specialty 182.2 7.5 % 152.7 6.6 % Property Other 29.7 1.2 % 12.6 0.5 % Property Catastrophe 5.0 0.2 % 2.1 0.1 % Insurance & Services 1,249.2 51.5 % 1,086.8 46.9 % Core 2,280.6 94.0 % 2,299.9 99.2 % Corporate (1) 145.6 6.0 % 18.2 0.8 % Total net premiums earned $ 2,426.2 100.0 % $ 2,318.1 100.0 % (1) Corporate includes gross premiums written and net premiums earned from all runoff business.
Biggest changeWithin our segments, we underwrite a variety of insurance and reinsurance products as shown in the table below. 4 The following tables prov ide a breakdown by line and type of business of gross premiums written and net premiums earned for the years ended December 31, 2024, 2023, and 2022 : 2024 2023 2022 Amount Percentage of Total Amount Percentage of Total Amount Percentage of Total Gross premiums written ($ in millions) Casualty $ 468.0 14.4 % $ 551.7 16.1 % $ 485.0 14.2 % Specialty 529.0 16.4 % 437.2 12.8 % 447.0 13.1 % Property Other 129.4 4.0 % 117.8 3.4 % 328.7 9.6 % Property Catastrophe 209.2 6.4 % 164.3 4.8 % 260.3 7.6 % Other — — % — — % 0.4 — % Reinsurance 1,335.6 41.2 % 1,271.0 37.1 % 1,521.4 44.5 % A&H 810.5 25.0 % 844.7 24.6 % 858.8 25.2 % Casualty 637.5 19.6 % 831.3 24.3 % 759.1 22.3 % Specialty 272.6 8.4 % 281.2 8.2 % 241.6 7.1 % Property Other 118.6 3.7 % 73.3 2.1 % 20.8 0.7 % Property Catastrophe 1.6 — % 9.2 0.3 % 3.9 0.1 % Insurance & Services 1,840.8 56.7 % 2,039.7 59.5 % 1,884.2 55.4 % Core 3,176.4 97.9 % 3,310.7 96.6 % 3,405.6 99.9 % Corporate (1) 68.2 2.1 % 116.7 3.4 % 4.1 0.1 % Total gross premiums written $ 3,244.6 100.0 % $ 3,427.4 100.0 % $ 3,409.7 100.0 % 2024 2023 2022 Amount Percentage of Total Amount Percentage of Total Amount Percentage of Total Net premiums earned ($ in millions) Casualty $ 478.6 20.4 % $ 539.2 22.2 % $ 513.4 22.1 % Specialty 307.4 13.1 % 283.9 11.7 % 317.4 13.7 % Property Other 119.4 5.1 % 120.0 5.0 % 257.7 11.1 % Property Catastrophe 139.7 6.0 % 88.3 3.6 % 124.2 5.4 % Other — — % — — % 0.4 — % Reinsurance 1,045.1 44.6 % 1,031.4 42.5 % 1,213.1 52.3 % A&H 668.4 28.5 % 649.6 26.8 % 603.1 26.1 % Casualty 365.0 15.6 % 382.7 15.8 % 316.3 13.6 % Specialty 52.2 2.2 % 182.2 7.5 % 152.7 6.6 % Property Other 70.3 3.0 % 29.7 1.2 % 12.6 0.5 % Property Catastrophe (1.9) (0.1) % 5.0 0.2 % 2.1 0.1 % Insurance & Services 1,154.0 49.2 % 1,249.2 51.5 % 1,086.8 46.9 % Core 2,199.1 93.8 % 2,280.6 94.0 % 2,299.9 99.2 % Corporate (1) 144.4 6.2 % 145.6 6.0 % 18.2 0.8 % Total net premiums earned $ 2,343.5 100.0 % $ 2,426.2 100.0 % $ 2,318.1 100.0 % (1) Corporate includes gross premiums written and net premiums earned from all runoff business.
We price our products by assessing, among other things, the distribution of potential outcomes and the our margin required to achieve our desired underwriting result.
We price our products by assessing, among other things, the distribution of potential outcomes and the margin required to achieve our desired underwriting result.
Disclosure of Information In addition to powers under the Insurance Act to investigate the affairs of an insurer, the BMA may require certain information from an insurer (or certain other persons) to be produced to the BMA.
Disclosure of Information In addition to the powers under the Insurance Act to investigate the affairs of an insurer, the BMA may require certain information from an insurer (or certain other persons) to be produced to the BMA.
For primary insurance business, we enter into agreements with select MGAs, who then market our insurance products to the general public and have underwriting authority on our behalf. We pay certain MGAs profit commissions based upon the underwriting profit of business produced. We have well-defined underwriting standards in place for these MGAs that are closely monitored by our staff.
For primary insurance business, we enter into agreements with select MGAs, who then market insurance products to brokers and the general public and have underwriting authority on our behalf. We pay certain MGAs profit commissions based upon the underwriting profit of business produced. We have well-defined underwriting standards in place for these MGAs that are closely monitored by our staff.
While pricing laws vary from state to state, their objectives are generally to ensure that rates are not excessive, unfairly discriminatory or used to engage in unfair price competition. The ability and timing of SiriusPoint's U.S.-based insurance and reinsurance subsidiaries to increase rates are dependent upon the regulatory requirements in each state where policies are sold.
While pricing laws vary from state to state, their objectives are generally to ensure that rates are not excessive, unfairly discriminatory or used to engage in unfair price competition. The ability and timing of SiriusPoint's U.S.- 20 based insurance and reinsurance subsidiaries to increase rates are dependent upon the regulatory requirements in each state where policies are sold.
We took underwriting action in numerous lines of business in the portfolio including global property, U.S. casualty, and multi-year and other structured transactions. Our most notable underwriting action centered on International property within the Reinsurance segment, where we exited around $300 million of premiums, which had been SiriusPoint’s primary source of underwriting volatility.
In 2022, we took underwriting action in numerous lines of business in the portfolio including global property, U.S. casualty, and multi-year and other structured transactions. Our most notable underwriting action centered on international property within the Reinsurance segment, where we exited around $300 million of premiums, which had been SiriusPoint’s primary source of underwriting volatility.
A company may not declare or pay a dividend, or make a distribution out of contributed surplus, if there are reasonable grounds for believing that: (i) the company is, or would after the payment be, 20 unable to pay its liabilities as they become due; or (ii) the realizable value of the company’s assets would thereby be less than its liabilities.
A company may not declare or pay a dividend, or make a distribution out of contributed surplus, if there are reasonable grounds for believing that: (i) the company is, or would after the payment be, unable to pay its liabilities as they become due; or (ii) the realizable value of the company’s assets would thereby be less than its liabilities.
SiriusPoint's U.S.-based insurance and 22 reinsurance subsidiaries may be required to participate in guaranty funds to help pay the obligations of impaired, insolvent or failed insurance companies to their policyholders and claimants. Such participation generally includes an assessment based on the premiums written by the insurer in such state applicable to particular lines of business.
SiriusPoint's U.S.-based insurance and reinsurance subsidiaries may be required to participate in guaranty funds to help pay the obligations of impaired, insolvent or failed insurance companies to their policyholders and claimants. Such participation generally includes an assessment based on the premiums written by the insurer in such state applicable to particular lines of business.
A covered agreement is an agreement between the U.S. and one or more foreign governments, authorities or regulatory entities, regarding prudential measures with respect to insurance or reinsurance. The FIO is further charged with determining, in accordance with the procedures and standards established under the Dodd-Frank Act, whether state laws are preempted by a covered agreement.
A covered agreement is an agreement between the U.S. and one or more foreign governments, authorities or regulatory entities, 21 regarding prudential measures with respect to insurance or reinsurance. The FIO is further charged with determining, in accordance with the procedures and standards established under the Dodd-Frank Act, whether state laws are preempted by a covered agreement.
We maintain a disciplined underwriting strategy which, while considering overall exposure, focuses on writing more business when market terms and conditions are favorable and reducing business volume when terms and conditions become less 9 favorable. We offer clients a wide range of insurance and reinsurance products across multiple lines of business to satisfy risk management needs.
We maintain a disciplined underwriting strategy which, while considering overall exposure, focuses on writing more business when market terms and conditions are favorable and reducing business volume when terms and conditions become less favorable. We offer clients a wide range of insurance and reinsurance products across multiple lines of business to satisfy risk management needs.
We do not apply hedge accounting to currency swaps or forwards. See Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Note 8 “Investments” in our audited consolidated financial statements included elsewhere in this Annual Report for additional information on our investment portfolio.
We do not apply hedge accounting to currency swaps or forwards. See Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Note 7 “Investments” in our audited consolidated financial statements included elsewhere in this Annual Report for additional information on our investment portfolio.
As conduct regulator, the FCA also acts to protect policyholders but the FCA's focus is to ensure that consumers are treated fairly when dealing with insurers and insurance intermediaries while the PRA's focus is to ensure that policyholders have appropriate protection in respect of the cover for the risks that they are insured against. The U.K.
As conduct regulator, the FCA also acts to protect policyholders but the FCA's focus is to ensure that consumers are treated fairly when dealing with insurers and insurance intermediaries while the PRA's focus is to ensure that policyholders have appropriate protection in respect of the cover for the risks that they are insured against. 24 The U.K.
If an insurance company has insufficient capital, regulators may act to reduce the amount of insurance it can issue or, in severe situations, assume control of the company. None of SiriusPoint's 21 U.S.-based insurance and reinsurance subsidiaries is currently subject to regulatory scrutiny based on their respective IRIS ratios.
If an insurance company has insufficient capital, regulators may act to reduce the amount of insurance it can issue or, in severe situations, assume control of the company. None of SiriusPoint's U.S.-based insurance and reinsurance subsidiaries is currently subject to regulatory scrutiny based on their respective IRIS ratios.
Key controls in place include formal written Program Management Agreements, written underwriting guidelines, annual underwriting audits, and a monthly flow of financial and operational metrics that provide transparency into underlying business results mostly through our MGAs and strategic partnerships which source business internationally and in the United States.
Key controls in place include formal written Program Management Agreements, written underwriting guidelines, annual underwriting audits, and a monthly flow of financial and operational metrics that provide transparency into underlying business results mostly through our MGAs and strategic partnerships which source business internationally and in the United 7 States.
It imposes economic risk-based solvency requirements across all member states. The aim of the Solvency II Regulation is to ensure that insurance and reinsurance undertakings are financially sound and can withstand adverse events in order to protect policyholders and the stability of the financial system as a whole.
It imposes economic risk-based solvency requirements across all member states. The aim of the Solvency II 22 Regulation is to ensure that insurance and reinsurance undertakings are financially sound and can withstand adverse events in order to protect policyholders and the stability of the financial system as a whole.
You may also access, free of charge, our reports filed with the SEC (for example, our Annual Report, our Quarterly Reports on Form 10-Q and our Current Reports on Form 8-K and any amendments to those forms) through the “Investor Relations” portion of our Internet webs ite ( www.siriuspt.com ).
You may also access, free of charge, our reports filed with the SEC (for example, our Annual Report, our Quarterly Reports on Form 10-Q and our Current Reports on Form 8-K and any amendments to those forms) through the “Investor Relations” portion of our Internet webs ite 28 ( www.siriuspt.com ).
While the federal government does not directly regulate the insurance business, the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act") made sweeping changes to the regulation of financial services entities, products and markets. 23 The Dodd-Frank Act established the Federal Insurance Office ("FIO") within the Treasury Department to monitor the insurance industry and certain lines of business.
While the federal government does not directly regulate the insurance business, the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act") made sweeping changes to the regulation of financial services entities, products and markets. The Dodd-Frank Act established the Federal Insurance Office ("FIO") within the Treasury Department to monitor the insurance industry and certain lines of business.
These ratings reflect the rating agency’s views regarding our balance sheet strength, operating performance, business profile and enterprise risk management. It is not an evaluation directed toward the protection of investors or a recommendation to buy, sell or hold our common shares.
These ratings reflect the rating agency’s views regarding our balance sheet strength, operating performance, business profile and enterprise risk management. It is not an evaluation directed 12 toward the protection of investors or a recommendation to buy, sell or hold our common shares.
Total statutory capital consists of the insurer’s paid in share capital, its contributed surplus (sometimes called additional paid in capital) and any other fixed capital designated by the BMA as statutory capital (such as letters of credit). Fit and Proper Controllers The BMA maintains supervision over the controllers (as defined herein) of all Bermuda registered insurers.
Total statutory capital consists of the insurer’s paid in share capital, its contributed surplus (sometimes called additional paid in capital) and any other fixed capital designated by the BMA as statutory capital (such as letters of credit). 15 Fit and Proper Controllers The BMA maintains supervision over the controllers (as defined herein) of all Bermuda registered insurers.
Non-insurance Business No Class 3A and Class 4 insurer may engage in non-insurance business unless that non-insurance business is ancillary to its insurance business. Independent Approved Auditor Every insurer must appoint an independent auditor, approved by the BMA, who will annually audit and report on the insurer’s statutory financial statements.
Non-insurance Business No Class 3A and Class 4 insurers may engage in non-insurance business unless that non-insurance business is ancillary to its insurance business. Independent Approved Auditor Every insurer must appoint an independent auditor, approved by the BMA, who will annually audit and report on the insurer’s statutory financial statements.
Attachment points and coverage limits vary by product and region around the world. Protections by reportable segment are summarized below. Reinsurance Segment Our core proportional property reinsurance programs provide protection for parts of the International and United States non proportional treaty accounts.
Attachment points and coverage limits vary by product and region around the world. Protections by reportable segment are summarized below. Reinsurance Segment Our proportional property reinsurance programs provide protection for parts of the International and United States non proportional treaty accounts.
In making its determination, the BMA may also give regard to (i) the location where management of the insurer meets to effect policy decisions of the insurer; (ii) the residence of the officers, insurance managers or employees of the insurer; and (iii) the residence of one or more directors of the insurer in Bermuda.
In making its determination, the BMA may also give regard to (i) the location where management of the insurer meets to effect policy decisions of the insurer; (ii) the residence of 13 the officers, insurance managers or employees of the insurer; and (iii) the residence of one or more directors of the insurer in Bermuda.
These laws and regulations are generally designed to protect the interests of policyholders, consumers and claimants, rather than investors. 24 Prudential regulation and supervision focuses on authorization, ownership and control, resourcing and capital adequacy, risk identification and management, and sound governance.
These laws and regulations are generally designed to protect the interests of policyholders, consumers and claimants, rather than investors. Prudential regulation and supervision focuses on authorization, ownership and control, resourcing and capital adequacy, risk identification and management, and sound governance.
SiriusPoint International Insurance Corporation (publ) had previously been operating in the U.K. under an EEA branch passporting license and has applied to the PRA to transform the branch to a third country insurance branch. Approval from the PRA to operate the third country insurance branch was granted in March 2022.
SiriusPoint International Insurance Corporation (publ) had previously been operating in the U.K. under an EEA branch passporting license and applied to the PRA to transform the branch to a third country insurance branch. Approval from the PRA to operate the third country insurance branch was granted in March 2022.
SiriusPoint's U.S.-based insurance and reinsurance subsidiaries, and their respective domiciliary state regulators (the "Domiciliary States") are as follows: • SiriusPoint America Insurance Company (New York State Department of Financial Services); • SiriusPoint Specialty Insurance Corporation (New Hampshire Insurance Department); and • Oakwood Insurance Company (Tennessee Department of Commerce and Insurance).
SiriusPoint's U.S.-based insurance and reinsurance subsidiaries, and their respective domiciliary state regulators (the "Domiciliary States") are as follows: • SiriusPoint America Insurance Company (New York State Department of Financial Services (“NYDFS”)); • SiriusPoint Specialty Insurance Corporation (New Hampshire Insurance Department); and • Oakwood Insurance Company (Tennessee Department of Commerce and Insurance).
We have received approval from the BMA to file a consolidated group financial condition report, inclusive of SiriusPoint, SiriusPoint Bermuda and Alstead Re. 16 Minimum Liquidity Ratio The Insurance Act provides a minimum liquidity ratio for general business insurers.
We have received approval from the BMA to file a consolidated group financial condition report, inclusive of SiriusPoint, SiriusPoint Bermuda and Alstead Re. Minimum Liquidity Ratio The Insurance Act provides a minimum liquidity ratio for general business insurers.
Where an insurer fails to meet its 17 MSM or minimum liquidity ratio on the last day of any financial year, it is prohibited from declaring or paying any dividends during the next financial year without the approval of the BMA.
Where an insurer fails to meet its MSM or minimum liquidity ratio on the last day of any financial year, it is prohibited from declaring or paying any dividends during the next financial year without the approval of the BMA.
Our pricing requirements are based on a number of underwriting factors including historical results, analysis of exposure and estimates of future loss costs, a review of other programs displaying similar exposure characteristics, ceding company's underwriting and claims experience.
Our pricing requirements are based on a number of underwriting factors including historical results, analysis of exposure and estimates of future loss costs, a review of other programs displaying similar exposure characteristics, and the ceding company's underwriting and claims experience.
The amounts of capital required by Lloyd's to be maintained in the form of Funds at Lloyd's to support the activities of the Members of a syndicate is determined by a combination of the managing agent's assessment of capital requirements for the 27 syndicate, and review and challenge by Lloyd's.
The amounts of capital required by Lloyd's to be maintained in the form of Funds at Lloyd's to support the activities of the Members of a syndicate is determined by a combination of the managing agent's assessment of capital requirements for the syndicate, and review and challenge by Lloyd's.
The level of the ECA is set to ensure that Lloyd's overall aggregate capital is maintained at a level necessary to retain its desired rating, as well as to meet the requirements of the U.K. Regulators.
The level of the ECA is set to ensure that Lloyd's overall aggregate capital is maintained at a level necessary to retain its desired rating, as 25 well as to meet the requirements of the U.K. Regulators.
As of December 31, 2022, SiriusPoint 's U.S. domiciled subsidiaries exceeded all required RBC regulatory thresholds. The NAIC has a set of financial relationship tests known as the Insurance Regulatory Information System to assist state insurance regulators in monitoring the financial condition of insurance companies and identifying companies that require special regulatory attention operating in their respective states.
As of December 31, 2024, SiriusPoint 's U.S. domiciled subsidiaries exceeded all required RBC regulatory thresholds. The NAIC has a set of financial relationship tests known as the Insurance Regulatory Information System to assist state insurance regulators in monitoring the financial condition of insurance companies and identifying companies that require special regulatory attention operating in their respective states.
The NAIC's Insurance Holding Company System Regulatory Model Act (the "Holding Company Model Act"), addresses the concept of "enterprise risk" within an insurance holding company system and provides enhanced authority for states to regulate insurers as well as their affiliated entities and imposed more extensive informational requirements on parents and other affiliates of licensed insurers or reinsurers for the purpose of protecting licensed companies from enterprise risk.
The NAIC's Insurance Holding Company System Regulatory Model Act (the "Holding Company Model Act"), addresses the concept of "enterprise risk" within an insurance holding company system and provides enhanced authority for states to regulate insurers as well as their affiliated entities and imposes more extensive informational requirements on parents and other affiliates of licensed insurers or reinsurers for the purpose of protecting licensed companies from enterprise risk.
U.S. state regulators had 60 months, or five years, to adopt reinsurance reforms removing reinsurance collateral requirements for EU reinsurers that meet the Covered Agreement's prescribed minimum conditions or else state laws imposing such reinsurance collateral requirements could have been subject to federal preemption.
U.S. state regulators had 60 months, or five years, to adopt reinsurance reforms removing reinsurance collateral requirements for E.U. reinsurers that meet the Covered Agreement's prescribed minimum conditions or else state laws imposing such reinsurance collateral requirements could have been subject to federal preemption.
While qualifying insurers are not currently required to maintain its statutory capital and surplus at this level, the TCL serves as an early warning tool for the BMA and failure to maintain statutory capital at least equal to the TCL will likely result in increased regulatory oversight.
While qualifying insurers are not currently required to maintain their statutory capital and surplus at this level, the TCL serves as an early warning tool for the BMA and failure to maintain statutory capital at least equal to the TCL will likely result in increased regulatory oversight.
Therefore, the Solvency II group requirements are capped at the highest European entity, Sirius Group International S.à r.l. Accordingly, the Swedish Financial Supervisory Authority (the "SFSA") is the group supervisor for the Solvency II group, and the BMA has been designated as the group supervisor for SiriusPoint and below.
Therefore, the Solvency II group requirements are capped at the highest European entity, Sirius Group International S.à r.l. Accordingly, the Swedish Financial Supervisory Authority (the "SFSA") is the group supervisor for the Solvency II group, and the BMA has been designated as the group supervisor for SiriusPoint and subsidiaries.
Any entity that must satisfy economic substance requirements but fails to do so could face automatic disclosure to competent authorities in the EU of the information filed by the entity with the Bermuda Registrar of Companies in connection with the economic substance requirements and may also face financial penalties, restriction or regulation of its business activities and/or may be struck off as a registered entity in Bermuda.
Any entity that must satisfy economic substance requirements but fails to do so could face automatic disclosure to competent authorities in the E.U. of the information filed by the entity with the Bermuda Registrar of Companies in connection with the economic substance requirements and may also face financial penalties, restriction or regulation of its business activities and/or may be struck off as a registered entity in Bermuda.
Underwriting results The determination of our reportable segments is based on the manner in which management monitors the performance of our operations. We classify our business into two reportable segments - Reinsurance and Insurance & Services. Collectively, the sum of these two segments constitute “Core” results.
Underwriting results The determination of our reportable segments is based on the manner in which management monitors the performance of our operations. We classify our business into two reportable segments - Reinsurance and Insurance & Services. Collectively, the sum of these two segments constitutes “Core” results.
Reportable Segments The determination of our reportable segments is based on the manner in which management monitors the performance of our operations. We classify our business into two reportable segments - Reinsurance and Insurance & Services. Collectively, the sum of these two segments constitute “Core” results.
Reportable Segments The determination of our reportable segments is based on the manner in which management monitors the performance of our operations. We classify our business into two reportable segments - Reinsurance and Insurance & Services. Collectively, the sum of these two segments constitutes “Core” results.
A proportional reinsurance treaty is an arrangement whereby we assume a predetermined proportional share of the premiums and losses generated on specified business. An excess of loss treaty is an 7 arrangement whereby we assume losses that exceed a specific retention of loss by the ceding company.
A proportional reinsurance treaty is an arrangement whereby we assume a predetermined proportional share of the premiums and losses generated on specified business. An excess of loss treaty is an 5 arrangement whereby we assume losses that exceed a specific retention of loss by the ceding company.
In London, we write on Lloyd’s paper through our platform, Syndicate 1945, and our US platform underwrites through SiriusPoint America Insurance Company (“SiriusPoint America”). Our underwriting focus is on proportional transactions covering all major commercial casualty lines, as well professional liability with an emphasis on specialty niche classes of business including personal lines.
In London, we write on Lloyd’s paper through our platform, Syndicate 1945, and our U.S. platform underwrites through SiriusPoint America Insurance Company (“SiriusPoint America”). Our underwriting focus is on proportional transactions covering all major commercial casualty lines, as well professional liability with an emphasis on specialty niche classes of business including personal lines.
Overall, our investment strategy remains focused on high quality, fixed income instruments with an average credit rating of “AA”. SiriusPoint's investment objective is to maximize risk-adjusted after tax net investment income while maintaining liquidity, diversification and complying with internal, external risk and capital management requirements in support of meeting policyholder obligations.
Overall, our investment strategy remains focused on high quality, fixed income instruments with an average credit rating of “AA-”. SiriusPoint's investment objective is to maximize risk-adjusted after tax net investment income while maintaining liquidity, diversification and complying with internal, external risk and capital management requirements in support of meeting policyholder obligations.
For reinsurance business, we obtain most of our submissions from reinsurance intermediaries (“brokers”) that represent the ceding company. The process of placing an intermediate reinsurance program typically begins when a ceding company enlists the aid of a reinsurance intermediary in structuring a reinsurance program.
For reinsurance business, we obtain most of our submissions from reinsurance intermediaries (“brokers”) that represent the ceding company. The process of placing a reinsurance program typically begins when a ceding company enlists the aid of a reinsurance intermediary in structuring a reinsurance program.
The IDD applies to all distributors of insurance and reinsurance products (including insurers and reinsurers selling directly to customers) and intends to strengthen the regulatory regime applicable to distribution activities through increased transparency, information and conduct requirements. The General Data Protection Regulation (EU 2016/679) ("GDPR") became effective on May 25, 2018.
The IDD applies to all distributors of insurance and reinsurance products (including insurers and reinsurers selling directly to customers) and intends to strengthen the regulatory regime applicable to distribution activities through increased transparency, information and conduct requirements. The General Data Protection Regulation (E.U. 2016/679) ("GDPR") became effective on May 25, 2018.
We monitor the financial strength and ratings of retrocessionaires on an ongoing basis. Uncollectible amounts historically have not been significant. 13 The following table provides a listing of our loss and loss expenses recoverable, net by the reinsurer’s S&P rating and the percentage of total recoverables as of December 31, 2023.
We monitor the financial strength and ratings of retrocessionaires on an ongoing basis. Uncollectible amounts historically have not been significant. The following table provides a listing of our loss and loss expenses recoverable, net by the reinsurer’s S&P rating and the percentage of total recoverables as of December 31, 2024.
Further, losses to a number of deterministic scenarios involving both natural and man-made catastrophes are estimated and tracked. 10 The following tables provide an e stimate of our four largest PML zones on a per occurrence basis for 1-in-100 and 1-in-250 year events as of January 1, 2024 and 2023 as measured by net after-tax exposure.
Further, losses to a number of deterministic scenarios involving both natural and man-made catastrophes are estimated and tracked. 8 The following tables provide an e stimate of our four largest PML zones on a per occurrence basis for 1-in-100 and 1-in-250 year events as of January 1, 2025 and 2024 as measured by net after-tax exposure.
As Sweden is a member of the EU, the SFSA supervision of branches is recognized across all locations within the EU (apart from customer conduct that is regulated and supervised locally across the EU).
As Sweden is a member of the EU, the SFSA supervision of branches is recognized across all locations within the E.U. (apart from customer conduct that is regulated and supervised locally across the EU).
The arrangement allows us to materially participate in underwriting in concentrated, niche businesses that are new to our portfolio and provide guidance and supervision. We launched 9 new strategic partnerships with various program administrators during 2023, which underwrite across many business lines, including aviation, commercial auto, marine, professional liability and surety.
The arrangement allows us to materially participate in underwriting in concentrated, niche businesses that are new to our portfolio and provide guidance and supervision. We launched 19 new strategic partnerships with various program administrators during 2024, which underwrite across many business lines, including aviation, commercial auto, marine, professional liability and surety.
Reinsurance Recoverables by Rating As of December 31, 2023, we had loss and loss adjustment expenses recoverable, net of $2.3 billion (December 31, 2022 - $1.4 billion). Because retrocessional reinsurance contracts do not relieve us of our obligation to our insureds, the ability to collect balances due from our reinsurers is important to our financial strength.
Reinsurance Recoverables by Rating As of December 31, 2024, we had loss and loss adjustment expenses recoverable, net of $2.3 billion (December 31, 2023 - $2.3 billion). Because retrocessional reinsurance contracts do not relieve us of our obligation to our insureds, the ability to collect balances due from our reinsurers is important to our financial strength.
The coverage for 2024 is comprised of a combination of reinsurance placed on lead terms on which several reinsurers participate and private placements with individual reinsurers at 12 terms and conditions based on individual reinsurer preference. The table below represents a broad summary of coverage and attachment points in-force protection as of January 1, 2024 and 2023.
The coverage for 2025 is comprised of a combination of reinsurance placed on lead terms on which several reinsurers participate and private placements with individual reinsurers at 10 terms and conditions based on individual reinsurer preference. The table below represents a broad summary of coverage and attachment points in-force protection as of January 1, 2025 and 2024.
As group supervisor, the BMA performs a number of supervisory functions including (i) coordinating the gathering and dissemination of information which is of importance for the supervisory task of other competent authorities; (ii) carrying out a supervisory review and assessment of the Regulatory Group; (iii) carrying out an assessment of the Regulatory Group's compliance with the rules on solvency, risk concentration, intra-group transactions and good governance procedures; (iv) planning and coordinating, with other competent authorities, supervisory activities in respect of the Regulatory Group, both as a going concern and in emergency situations; (v) coordinating any enforcement action that may need to be taken against the Regulatory Group or any of its members; and (vi) planning and coordinating meetings of colleges of supervisors (consisting of insurance regulators) in order to facilitate the carrying out of the functions described above.
As group supervisor, the BMA performs a number of supervisory functions including (i) coordinating the gathering and dissemination of information which is of importance for the supervisory task of other competent authorities; (ii) carrying out a supervisory review and assessment of the Regulatory Group; (iii) carrying out an assessment of the Regulatory Group's compliance with the rules on solvency, risk concentration, intra-group transactions and good governance procedures; (iv) planning and coordinating, with other competent authorities, supervisory activities in respect of the Regulatory Group, both as a going concern and in emergency situations; (v) coordinating any enforcement action that may need to be taken against the Regulatory Group or any of its members; and (vi) planning and coordinating meetings of colleges of supervisors (consisting of insurance regulators) in order to facilitate the carrying out of the functions described above. 16 Group Solvency and Group Supervision The current supervision and solvency rules (together, "Group Rules") apply to the Regulatory Group so long as the BMA remains SiriusPoint's group supervisor.
Based upon these formulas, as of December 31, 2022, SiriusPoint America has dividend capacity without prior approval of the applicable regulatory authority, while Oakwood and SiriusPoint Specialty do not have dividend capacity without prior approval of the applicable regulatory authorities. U.S.
Based upon these formulas, as of December 31, 2024, SiriusPoin t America has dividend capacity without prior approval of the applicable regulatory authority, while Oakwood and SiriusPoint Specialty do not have dividend capacity without prior approval of the applicable regulatory authorities. U.S.
Claims Management Our global claims team has experience in the markets, countries, and industries we serve, with focus on adding value to our customer and partner portfolios by effectively handling claims and mitigating customer loss across our many insurance products. Our global team handles claims across our diverse underwriting portfolio.
Claims Management Our Global Claims Team has technical experience in the markets, countries, and industries we serve, with a focus on adding value to our customer and partner portfolios by effectively handling claims and mitigating customer loss across our many insurance products. Our global team handles or performs claims oversight across our diverse underwriting portfolio.
Our insurance and reinsurance opera ting subsidiaries are assigned financial strength ratings as follows: AM Best (1) Fitch (2) S&P (3) Rating Outlook Rating Outlook Rating Outlook SiriusPoint Bermuda "A-" (Excellent) Stable "A–" (Strong) Stable "A–" (Strong) Stable SiriusPoint International "A-" (Excellent) Stable "A–" (Strong) Stable "A–" (Strong) Stable SiriusPoint America "A-" (Excellent) Stable "A–" (Strong) Stable "A–" (Strong) Stable SiriusPoint Specialty Insurance Corporation "A-" (Excellent) Stable N/A N/A "A–" (Strong) Stable (1) “A–" is the fourth highest of 13 financial strength ratings assigned by AM Best, as last updated April 19, 2023.
Our insurance and reinsurance opera ting subsidiaries are assigned financial strength ratings as follows: AM Best (1) Fitch (2) S&P (3) Moody’s (4) Rating Outlook Rating Outlook Rating Outlook Rating Outlook SiriusPoint Bermuda "A-" (Excellent) Stable "A–" (Strong) Stable "A–" (Strong) Stable "A3" Stable SiriusPoint International "A-" (Excellent) Stable "A–" (Strong) Stable "A–" (Strong) Stable "A3" Stable SiriusPoint America "A-" (Excellent) Stable "A–" (Strong) Stable "A–" (Strong) Stable "A3" Stable SiriusPoint Specialty Insurance Corporation "A-" (Excellent) Stable N/A N/A "A–" (Strong) Stable "A3" Stable (1) “A–" is the fourth highest of 13 financial strength ratings assigned by AM Best, as last updated April 26, 2024.
Generally, this deferred tax liability ($123.0 million based on the December 31, 2023 SEK to USD exchange rate) is required to be paid by SiriusPoint International if it fails to maintain prescribed levels of premium writings and loss reserves in future years.
Generally, this deferred tax liability ($107.3 million based on the December 31, 2024 SEK to USD exchange rate) is required to be paid by SiriusPoint International if it fails to maintain prescribed levels of premium writings and loss reserves in future years.
Our MGA strategy is to partner with high integrity and transparent leaders and teams with deep underwriting expertise and a track record of success. Our partnerships are structured to incentivize all parties to deliver thereby allowing capable teams to do what they do best, while we provide services where our partners are lacking.
Our MGA strategy is to partner with high integrity and transparent leaders and teams with deep underwriting expertise and a track record of success. Our partnerships are structured to incentivize all parties to deliver thereby allowing capable teams to do what they do best, while providing complementary services.
Lloyd's approved net capacity for Syndicate 1945 in 2024 is £144.0 million, or approximately $183.4 million (based on the December 31, 2023 GBP to USD exchange rate). Stamp capacity is a measure of the amount of net premium (gross premiums written less acquisition costs) that a syndicate is authorized by Lloyd's to write.
Lloyd's approved net capacity for Syndicate 1945 in 2025 is £208.0 million, or approximately $260.3 million (based on the December 31, 2024 GBP to USD exchange rate). Stamp capacity is a measure of the amount of net premium (gross premiums written less acquisition costs) that a syndicate is authorized by Lloyd's to write.
These ratings reflect AM Best’s, Fitch’s and S&P’s respective opinions of the ability of SiriusPoint’s respective subsidiaries to pay claims and are not evaluations directed to security holders. AM Best maintains a letter-scale rating system ranging from "A++" (Superior) to "F" (in liquidation). Fitch maintains a letter-scale rating system ranging from "AAA" (Exceptionally Strong) to "D" (Distressed).
These ratings reflect AM Best’s, Fitch’s, S&P’s and Moody’s respective opinions of the ability of SiriusPoint’s respective subsidiaries to pay claims and are not evaluations directed to security holders. AM Best maintains a letter-scale rating system ranging from “A++” (Superior) to “F” (in liquidation). Fitch maintains a letter-scale rating system ranging from “AAA” (Exceptionally Strong) to “D” (Distressed).
While we made significant progress in 2023, portfolio review and evaluation is an ongoing process and we will continue to make necessary adjustments by taking action to both grow and reduce lines of business based on our risk appetite, market conditions, and market opportunity. 4 2.
While we continued to make significant progress in 2024, portfolio review and evaluation is an ongoing process and we expect to continue to make necessary adjustments by taking action to both grow and reduce lines of business based on our risk appetite, market conditions, and market opportunity. 3 2.
Reinsurance Protection In the normal course of business, we seek to protect our business from losses due to concentration of risk and loss arising from catastrophic events with retrocession (reinsuring with third-party reinsurers).
We use our own proprietary models in these situations. 9 Reinsurance Protection In the normal course of business, we seek to protect our business from losses due to concentration of risk and loss arising from catastrophic events with retrocession (reinsuring with third-party reinsurers).
Service fee income from Consolidated MGAs We earn capital-light service fee income from our four consolidated MGAs, which helps to diversify our earnings. In addition, service fees from consolidated MGAs and their insurance products are generally not as prone to the volatile underwriting cycle that is common in the reinsurance marketplace.
In addition, all of the consolidated MGAs have third-party capacity providers. We earn capital-light service fee income from our three consolidated MGAs, which helps to diversify our earnings. In addition, service fees from consolidated MGAs and their insurance products are generally not as prone to the volatile underwriting cycle that is common in the reinsurance marketplace.
Catastrophe modeling is inherently uncertain due to the range of outcomes when projecting future events. Third-party modeling software does not provide information for all territories or perils for which we write business. We use our own proprietary models in these situations.
Catastrophe modeling is inherently uncertain due to the range of outcomes when projecting future events. Third-party modeling software does not provide information for all territories or perils for which we write business.
Under the provisions of the ESA, every Bermuda registered entity other than an entity which is resident for tax purposes in certain jurisdictions outside of Bermuda that carries on as a business engaged in one or more “relevant activities” referred to in the ESA must satisfy economic substance requirements by maintaining a substantial economic presence in Bermuda.
Economic Substance Act The Economic Substance Act 2018 (as amended) and its related regulations (together, the “ESA”) provides that every Bermuda registered entity other than an entity which is resident for tax purposes in certain jurisdictions outside of Bermuda that carries on as a business engaged in one or more “relevant activities” referred to in the ESA must satisfy economic substance requirements by maintaining a substantial economic presence in Bermuda.
The Federal Trade Commission, the Federal Bureau of Investigation, the Federal Communications Commission, the New York State Department of Financial Services, and the NAIC have undertaken various studies, reports and actions regarding data security for entities under their respective supervision.
The Federal Trade Commission, the Federal Bureau of Investigation, the Federal Communications Commission, the NYDFS, and the NAIC have undertaken various studies, reports and actions regarding data security for entities under their respective supervision.
Our claims specialists work closely with reinsurance intermediaries and/or ceding companies to obtain and/or review specific claims information, in order to properly adjust and resolve each claim matter.
Our claims advocates work closely with reinsurance intermediaries and/or ceding companies to obtain and review specific claims-related information, to properly resolve each claim matter.
(2) Total capital and common shareholders’ equity as of December 31, 2023 and 2022. Total capital represents total debt, Series B preference shares, and common shareholders’ equity. Catastrophe modeling is dependent upon several broad scientific, meteorological and economic assumptions.
Total capital represents total debt, Series B preference shares, and common shareholders’ equity. Catastrophe modeling is dependent upon several broad scientific, meteorological and economic assumptions.
We work in partnership with our business line experts to deliver on our claims promise: to provide security and resilience against insured risks. Our claims professionals support SiriusPoint’s primary insurance business, in addition to handling claims associated with program administrators, managing general agents, and third-party administrators.
We work in partnership with our business line experts to deliver on our claims promise: to provide security and resilience against insured or reinsured risks. Our claims advocates support SiriusPoint’s primary insurance business, in addition to handling oversight of claims associated with program administrators, MGAs, and third-party administrators.
We offer program management and underwriting guidance to our partners who provide access to modern, affordable accident and health solutions to their clients. Our partners include insurance and reinsurance brokers, managing general underwriters, managing general agents, third party administrators and insurtechs.
This includes employer groups, associations, affinity groups, higher education and other niche markets. We offer program management and underwriting guidance to our partners who provide access to modern, affordable accident and health solutions to their clients. Our partners include insurance and reinsurance brokers, managing general underwriters, managing general agents, third party administrators (“TPA”) and insurtechs.
States have adopted laws modeled on the NAIC's Risk Management and Own Risk and Solvency Assessment Model Act ("ORSA Model Act") to strengthen the ability of regulators to understand and regulate the risk-management practices of insurers and insurance groups.
These laws are applicable to certain types of primary insurance policies, but not applicable to reinsurance. 19 States have adopted laws modeled on the NAIC's Risk Management and Own Risk and Solvency Assessment Model Act ("ORSA Model Act") to strengthen the ability of regulators to understand and regulate the risk-management practices of insurers and insurance groups.
During 2023, all the three sources have generated higher earnings compared to 2022. Distribution relationships are important to us, as we generate premiums from various sources, including our consolidated MGAs and non-consolidated MGAs. We seek to apply our underwriting talent, capabilities and proven management expertise to underwrite a profitable book of business and identify new opportunities to create value.
Distribution relationships are important to us, as we generate premiums from various carefully selected partners, including our consolidated MGAs and non-consolidated MGAs. We seek to apply our underwriting talent, capabilities and proven management expertise to underwrite a profitable book of business and identify new opportunities to create value.
The 2023 LPT comprises several classes of business from 2021 and prior underwriting years. See Part II, Item 7 . “ Management’s Discussion and Analysis of Financial Condition and Results of Operations” for further discussion on the 2023 LPT. We also closed a loss portfolio transfer transaction on October 29, 2021 (the “2021 LPT”) with Pallas Reinsurance Company Ltd.
“ Management’s Discussion and Analysis of Financial Condition and Results of Operations” for further discussion on the 2024 LPT and 2023 LPT. We also closed a loss portfolio transfer transaction on October 29, 2021 with Pallas Reinsurance Company Ltd (the “2021 LPT”).
We believe that their experience, industry presence and long-standing relationships allow us to tailor our portfolio to specific market segments. Our approach to underwriting allows us to deploy our capital in a variety of lines of business and to capitalize on opportunities that we believe offer favorable returns on equity over the long term.
Our approach to underwriting allows us to deploy our capital in a variety of lines of business and to capitalize on opportunities that we believe offer favorable returns on equity over the long term.
In December 2016, PIPA sections relating generally to the establishment, staffing, funding, and general powers of the Privacy Commissioner came into force. In January 2020 a Privacy Commissioner was appointed. January 1, 2025 has been announced as the date of full implementation of PIPA. U.S.
In December 2016, PIPA sections relating generally to the establishment, staffing, funding and general powers of the Privacy Commissioner came into force and in January 2020 a Privacy Commissioner was appointed. On January 1, 2025,PIPA was fully implemented.
In addition to what is required under the Solvency II Regulation, Swedish insurance companies must conduct the business in accordance with "generally accepted insurance practices". 25 Safety Reserve Subject to certain limitations under Swedish law, SiriusPoint International is permitted to transfer pre-tax income amounts into a reserve referred to as a "Safety Reserve." Under local statutory requirements, an amount equal to the deferred tax liability on SiriusPoint International's Safety Reserve is included in Solvency Capital.
Safety Reserve Subject to certain limitations under Swedish law, SiriusPoint International is permitted to transfer pre-tax income amounts into a reserve referred to as a "Safety Reserve." Under local statutory requirements, an amount equal to the deferred tax liability on SiriusPoint International's Safety Reserve is included in Solvency Capital.
To the extent that the ESA applies to any of our entities registered in Bermuda, we will be required to demonstrate compliance with economic substance requirements by filing an annual economic substance declaration with the Registrar of Companies in Bermuda.
Under the ESA, insurance or pure equity holding entity activities (both as defined in the ESA) are relevant activities. To the extent that the ESA applies to any of our entities registered in Bermuda, we will be required to demonstrate compliance with economic substance requirements by filing an annual economic substance declaration with the Registrar of Companies in Bermuda.
Ultimate Net Loss Retention $ — $ 40.0 Insurance & Services Segment For A&H reinsurance, we have excess of loss protection covering our personal accident and life accounts. For A&H primary insurance, there are account specific quota share and stop‑loss reinsurance protections in place of various percentages for our medical benefits and student health businesses.
Ultimate Net Loss Retention $ 70.0 $ 72.5 Insurance & Services Segment For A&H primary insurance, there are account specific quota share and stop‑loss reinsurance protections in place of various percentages for our medical benefits and student businesses.
Specialty business lines in the Insurance & Services segment include Aviation & Space, Marine & Energy, Credit and Mortgage. Arcadian and Alta Signa support the Property & Casualty and Specialty business lines. Marketing and Distribution In Insurance & Services, SiriusPoint is a leading carrier for program administrators and managing general agents.
For Specialty, our business encompasses a broad range of worldwide insurance coverage. Specialty business lines in the Insurance & Services segment include Aviation & Space, Marine & Energy, Credit and Mortgage. 6 Marketing and Distribution In Insurance & Services, SiriusPoint is a leading carrier for program administrators and managing general agents.
SiriusPoint International Insurance Corporation (publ) is also supporting Syndicate 1945 through Sirius International Corporate Member, a corporate member of Lloyd's. 26 PRA and FCA regulation The primary statutory objectives of the PRA in relation to its supervision of insurers are (i) to promote their safety and soundness; and (ii) to contribute to the securing of an appropriate degree of protection for policyholders or those who may become policyholders.
PRA and FCA regulation The primary statutory objectives of the PRA in relation to its supervision of insurers are (i) to promote their safety and soundness; and (ii) to contribute to the securing of an appropriate degree of protection for policyholders or those who may become policyholders.
The MSM that must be maintained by a Class 3A insurer is the greater of (i) $1 million, or (ii) 20% of the first $6 million of net premiums written; if in excess of $6 million, the figure is $1.2 million plus 15% of net premiums written in excess of $6 million, or (iii) 15% of net aggregated loss and loss expense provisions and other insurance reserves, or (iv) 25% of its ECR as reported at the end of the relevant year.
The MSM that must be maintained by a Class 3A insurer is the greater of (i) $1 million, or (ii) 20% of the first $6 million of net premiums written; if in excess of $6 million, the figure is $1.2 million plus 15% of net premiums written in excess of $6 million, or (iii) 15% of net aggregated loss and loss expense provisions and other insurance reserves, or (iv) 25% of its ECR as reported at the end of the relevant year. 14 Each Class 3A and Class 4 insurer is also required to maintain its available statutory economic capital and surplus at a level equal to or in excess of its enhanced capital requirement (“ECR”), which is established by reference to either the BSCR model or an approved internal capital model.
We remain liable for risks reinsured in the event that the reinsurer does not honor its obligations under reinsurance contracts. 11 The effects of reinsurance on our written and earned premiu ms and on loss and loss adjustment expenses for the years ende d December 31, 2023, 2022 and 2021 were as follows: 2023 2022 2021 Written premiums: ($ in millions) Direct $ 1,678.7 $ 1,403.9 $ 718.0 Assumed 1,748.7 2,005.8 1,518.5 Gross premiums written 3,427.4 3,409.7 2,236.5 Ceded (989.5) (860.5) (502.3) Net premiums written $ 2,437.9 $ 2,549.2 $ 1,734.2 Premiums earned: Direct $ 1,498.0 $ 1,153.6 $ 600.8 Assumed 1,826.0 1,915.2 1,598.5 Gross premiums earned 3,324.0 3,068.8 2,199.3 Ceded (897.8) (750.7) (482.3) Net premiums earned $ 2,426.2 $ 2,318.1 $ 1,717.0 Loss and loss adjustment expenses: Direct $ 1,008.6 $ 778.0 $ 349.3 Assumed 910.5 1,386.8 1,506.1 Loss and loss adjustment expenses incurred 1,919.1 2,164.8 1,855.4 Ceded (537.8) (576.4) (528.9) Loss and loss adjustment expenses incurred, net $ 1,381.3 $ 1,588.4 $ 1,326.5 Our reinsurance protections primarily consist of pro-rata and excess of loss protections that protect our reportable segments within Reinsurance and Insurance & Services.
The effects of reinsurance on our written and earned premiu ms and on loss and loss adjustment expenses for the years ende d December 31, 2024, 2023 and 2022 were as follows: 2024 2023 2022 Premiums written: ($ in millions) Direct $ 1,824.3 $ 1,678.7 $ 1,403.9 Assumed 1,420.3 1,748.7 2,005.8 Gross premiums written 3,244.6 3,427.4 3,409.7 Ceded (892.5) (989.5) (860.5) Net premiums written $ 2,352.1 $ 2,437.9 $ 2,549.2 Premiums earned: Direct $ 1,721.5 $ 1,498.0 $ 1,153.6 Assumed 1,357.0 1,826.0 1,915.2 Gross premiums earned 3,078.5 3,324.0 3,068.8 Ceded (735.0) (897.8) (750.7) Net premiums earned $ 2,343.5 $ 2,426.2 $ 2,318.1 Loss and loss adjustment expenses: Direct $ 1,070.7 $ 1,008.6 $ 778.0 Assumed 961.5 910.5 1,386.8 Loss and loss adjustment expenses incurred 2,032.2 1,919.1 2,164.8 Ceded (663.7) (537.8) (576.4) Loss and loss adjustment expenses incurred, net $ 1,368.5 $ 1,381.3 $ 1,588.4 Our reinsurance protections primarily consist of pro-rata and excess of loss protections that protect our reportable segments within Reinsurance and Insurance & Services.
(“Alstead Re”), which is registered as a Class 3A general business insurer, as well as a segregated accounts company pursuant to the Segregated Accounts Companies Act 2000 (“SAC Act”). 15 The Insurance Act of 1978 The Insurance Act imposes solvency and liquidity standards on Bermuda insurance companies, as well as auditing and reporting requirements, and grants the Bermuda Monetary Authority (the “BMA”) powers to supervise, investigate, require information and demand the production of documents and intervene in the affairs of regulated companies.
The Insurance Act of 1978 The Insurance Act imposes solvency and liquidity standards on Bermuda insurance companies, as well as auditing and reporting requirements, and grants the Bermuda Monetary Authority (the “BMA”) powers to supervise, investigate, require information and demand the production of documents and intervene in the affairs of regulated companies.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

114 edited+16 added−36 removed343 unchanged
Biggest changeSimilar exposures to losses caused by the same types of catastrophic events occur in other lines of business such as aviation, casualty, contingency, credit, marine, and accident and health (including trip cancellation), including pandemic risk. The extent of catastrophe losses is a function of both the severity of the event and total amount of insured exposure affected by the event.
Biggest changeFor more information about our risks due to terrorist attacks, see “Risks Relating to Our Business—We have exposure to potential terrorist acts that can materially and adversely affect our business, results of operations and/or financial condition.” Similar exposures to losses caused by the same types of catastrophic events occur in other lines of business such as aviation, casualty, contingency, credit, marine, and accident and health (including trip cancellation), including pandemic risk.
Market, credit and liquidity risks include risks related to the performance of financial markets, impact of inflation, foreign currency fluctuations, economic and political conditions, inability to raise the funds necessary to pay the principal of or interest on our outstanding debt obligations and a downgrade or withdrawal of our financial ratings. • Competition Risks .
Market, credit and liquidity risks include risks related to the performance of financial markets, impact of inflation, foreign currency fluctuations, economic and political conditions, inability to raise the funds necessary to pay the principal of our interest on our outstanding debt obligations and a downgrade or withdrawal of our financial ratings. • Competition Risks .
This information includes confidential information relating to our business, and personally identifiable information and protected health information belonging to employees, customers, claimants and business partners. We implement and maintain reasonable security processes, practices and procedures appropriate to the nature of the information we hold, and we rely on sophisticated commercial control technologies to maintain security and confidentiality of our systems.
This information includes confidential information relating to our business, personally identifiable information and protected health information belonging to employees, customers, claimants and business partners. We implement and maintain reasonable security processes, practices and procedures appropriate to the nature of the information we hold, and we rely on sophisticated commercial control technologies to maintain security and confidentiality of our systems.
We cannot assure you that we will be able to compete successfully in the insurance and reinsurance market. Our failure to compete effectively would significantly and negatively affect our financial condition and results of operations and may increase the likelihood that we are deemed to be a passive foreign investment company or an investment company.
We cannot assure you that we will be able to compete successfully in the insurance and reinsurance market. Our failure to compete effectively would significantly and negatively affect our financial condition and results of operations may increase the likelihood that we are deemed to be a passive foreign investment company or an investment company.
Moreover, many of the MGAs we have invested, and may invest in, in are early-stage companies that carry higher operating expenses and a higher degree of uncertainty. Our investments in MGAs are illiquid, and we are subject to transfer restrictions in relation to those investments.
Moreover, many of the MGAs we have invested in, and may invest in, are early-stage companies that carry higher operating expenses and a higher degree of uncertainty. Our investments in MGAs are illiquid, and we are subject to transfer restrictions in relation to those investments.
Among the factors that could affect our share price are: • industry or general market conditions; • domestic and international economic factors unrelated to our performance; • changes in our clients’ needs; • new regulatory pronouncements and changes in regulatory guidelines; • lawsuits, enforcement actions and other claims by third parties or governmental authorities; • actual or anticipated fluctuations in our quarterly operating results; • changes in securities analysts' estimates of our financial performance or lack of research and reports by industry analysts; 60 • action by institutional shareholders or other large shareholders, including future sales; • speculation in the press or investment community; • investor perception of us and our industry; • changes in market valuations or earnings of similar companies; • any announcement by us or our competitors of a significant contract, acquisition, strategic transaction or expansion into a new line of business; • our ability to execute on our strategic transformation; • any future sales of our common shares or other securities; and • additions or departures of key personnel.
Among the factors that could affect our share price are: • industry or general market conditions; • domestic and international economic factors unrelated to our performance; • changes in our clients’ needs; • new regulatory pronouncements and changes in regulatory guidelines; • lawsuits, enforcement actions and other claims by third parties or governmental authorities; • actual or anticipated fluctuations in our quarterly operating results; • changes in securities analysts' estimates of our financial performance or lack of research and reports by industry analysts; • action by institutional shareholders or other large shareholders, including future sales; • speculation in the press or investment community; • investor perception of us and our industry; • changes in market valuations or earnings of similar companies; • any announcement by us or our competitors of a significant contract, acquisition, strategic transaction or expansion into a new line of business; • our ability to execute on our strategic transformation; • any future sales of our common shares or other securities; and • additions or departures of key personnel.
For example, our bye-laws: • establish a classified Board of Directors; • require advance notice of shareholders’ proposals in connection with annual general meetings; • authorize our board to issue “blank check” preferred shares; • prohibit us from engaging in a business combination with a person who acquires at least 15% of our common shares for a period of three years from the date such person acquired such common shares unless board and shareholder approval is obtained prior to the acquisition; • require that directors only be removed from office for cause by majority shareholder vote; • require a supermajority vote of shareholders to effect certain amendments to our memorandum of association and bye-laws; and • provide a consent right on the part of Daniel S.
For example, our bye-laws: • establish a classified Board of Directors; • require advance notice of shareholders’ proposals in connection with annual general meetings; • authorize our board to issue “blank check” preferred shares; • prohibit us from engaging in a business combination with a person who acquires at least 15% of our common shares for a period of three years from the date such person acquired such common shares unless board and shareholder approval is obtained prior to the acquisition; • require that directors only be removed from office for cause by majority shareholder vote; 56 • require a supermajority vote of shareholders to effect certain amendments to our memorandum of association and bye-laws; and • provide a consent right on the part of Daniel S.
If at any time it were established that we had been operating as an investment company in violation of the Investment Company Act, there would be a risk, among other material adverse consequences, that we could become subject to monetary penalties or injunctive relief, or both, that we could be unable to enforce contracts with third parties or that third parties could seek to obtain rescission of transactions undertaken during the period in which it was established that we were an 52 unregistered investment company.
If at any time it were established that we had been operating as an investment company in violation of the Investment Company Act, there would be a risk, among other material adverse consequences, that we could become subject to monetary penalties or injunctive relief, or both, that we could be unable to enforce contracts with third parties or that third parties could seek to obtain rescission of transactions undertaken during the period in which it was established that we were an unregistered investment company.
A CFC for U.S. federal income tax purposes is any foreign corporation if, on any day of the taxable year, 10% U.S. shareholders own (directly, indirectly through foreign entities or by attribution by application of certain constructive ownership rules) more than 50% (25% in the case of certain insurance companies) of the total combined voting power of all 55 classes of that corporation's voting shares, or more than 50% (25% in the case of certain insurance companies) of the total value of all the corporation's shares.
A CFC for U.S. federal income tax purposes is any foreign corporation if, on any day of the taxable year, 10% U.S. shareholders own (directly, indirectly through foreign entities or by attribution by application of certain constructive ownership rules) more than 50% (25% in the case of certain insurance companies) of the total combined voting power of all classes of that corporation's voting shares, or more than 50% (25% in the case of certain insurance companies) of the total value of all the corporation's shares.
Fluctuations result from a variety of factors, including: • the performance of our underwriting segments; • the performance of our investment portfolio; • insurance and reinsurance contract pricing; • our assessment of the quality of available insurance and reinsurance opportunities; • the volume and mix of insurance and reinsurance products we underwrite; • seasonality of the insurance and reinsurance businesses; • loss experience on our insurance and reinsurance liabilities; • low frequency and high severity loss events; • competitiveness in relevant insurance and reinsurance markets; and • our ability to assess and integrate our risk management strategy effectively.
Fluctuations result from a variety of factors, including: • the performance of our underwriting segments; 30 • the performance of our investment portfolio; • insurance and reinsurance contract pricing; • our assessment of the quality of available insurance and reinsurance opportunities; • the volume and mix of insurance and reinsurance products we underwrite; • seasonality of the insurance and reinsurance businesses; • loss experience on our insurance and reinsurance liabilities; • low frequency and high severity loss events; • competitiveness in relevant insurance and reinsurance markets; and • our ability to assess and integrate our risk management strategy effectively.
As such, we have been advised that there is doubt as to whether: • a holder of our shares would be able to enforce, in the courts of Bermuda, judgments of United States courts against persons who reside in Bermuda based upon the civil liability provisions of the United States federal securities laws; • a holder of our shares would be able to enforce, in the courts of Bermuda, judgments of United States courts based upon the civil liability provisions of the United States federal securities laws; • a holder of our shares would be able to bring an original action in the Bermuda courts to enforce liabilities against us or our directors and officers who reside outside the United States based solely upon United States federal securities laws.
As such, we have been advised that there is doubt as to whether: • a holder of our shares would be able to enforce, in the courts of Bermuda, judgments of United States courts against persons who reside in Bermuda based upon the civil liability provisions of the United States federal securities laws; 54 • a holder of our shares would be able to enforce, in the courts of Bermuda, judgments of United States courts based upon the civil liability provisions of the United States federal securities laws; • a holder of our shares would be able to bring an original action in the Bermuda courts to enforce liabilities against us or our directors and officers who reside outside the United States based solely upon United States federal securities laws.
In comparison, under Delaware law such transaction would not be voidable if: • the material facts as to such interested director’s relationship or interests were disclosed or were known to the Board of Directors and the Board of Directors had in good faith authorized the transaction by the affirmative vote of a majority of the disinterested directors; 58 • such material facts were disclosed or were known to the shareholders entitled to vote on such transaction and the transaction were specifically approved in good faith by vote of the majority of shares entitled to vote thereon; or • the transaction were fair as to the corporation as of the time it was authorized, approved or ratified.
In comparison, under Delaware law such transaction would not be voidable if: • the material facts as to such interested director’s relationship or interests were disclosed or were known to the Board of Directors and the Board of Directors had in good faith authorized the transaction by the affirmative vote of a majority of the disinterested directors; • such material facts were disclosed or were known to the shareholders entitled to vote on such transaction and the transaction were specifically approved in good faith by vote of the majority of shares entitled to vote thereon; or • the transaction were fair as to the corporation as of the time it was authorized, approved or ratified.
For example, the Russia/Ukraine conflict has created, and may, along with other global conflicts, continue to create heightened cybersecurity threats to our information technology infrastructure. Furthermore, a significant amount of communication between our employees and our business, banking and investment partners depends on information technology and electronic information exchange. We have licensed certain systems and data 33 from third parties.
For example, the Russia/Ukraine conflict has created, and may, along with other global conflicts, continue to create heightened cybersecurity threats to our information technology infrastructure. Furthermore, a significant amount of communication between our employees and our business, banking and investment partners depends on information technology and electronic information exchange. We have licensed certain systems and data from third parties.
See “ Risks Relating to Our Business — Our ability to pay dividends may be constrained by our holding company structure and certain regulatory and other factors .” Our operating subsidiaries are separate and distinct legal entities and have no obligation to pay any amounts due on our indebtedness, or to provide us with funds for our payment obligations, whether by dividends, distributions, loans or other payments.
See “ Risks Relating to Our Business — Our ability to pay dividends may be constrained by our holding company structure and certain regulatory and other factors .” 40 Our operating subsidiaries are separate and distinct legal entities and have no obligation to pay any amounts due on our indebtedness, or to provide us with funds for our payment obligations, whether by dividends, distributions, loans or other payments.
The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions; over time, controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate.
The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential 43 future conditions; over time, controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate.
If competitive pressures require us to reduce our prices, we would generally expect to reduce our future underwriting activities, resulting in reduced premiums and a reduction in expected earnings. If the insurance industry consolidates further, competition for customers could become more intense and we could incur greater expenses relating to customer acquisition and retention, further reducing our operating margins.
If competitive pressures require us to reduce our prices, we would generally expect to 32 reduce our future underwriting activities, resulting in reduced premiums and a reduction in expected earnings. If the insurance industry consolidates further, competition for customers could become more intense and we could incur greater expenses relating to customer acquisition and retention, further reducing our operating margins.
We believe that our activities, as currently conducted and as contemplated, will not cause our non-U.S. entities to be treated as engaging in a United States trade or business and consequently will not cause us to be subject to current United States federal income taxation on our net income (except for specific subsidiaries due to their respective operating models).
We believe that our activities, as currently conducted and as contemplated, will not cause our non-U.S. entities to be treated as engaging in a United States trade or business and consequently will not cause us to be subject to current United States 50 federal income taxation on our net income (except for specific subsidiaries due to their respective operating models).
To the extent that we are unable to locate an adequate replacement or are unable to do so within a reasonable period of time, our business may be significantly and negatively affected. 42 Our inability to provide collateral to certain counterparties on commercially acceptable terms as we grow could significantly and negatively affect our ability to implement our business strategy.
To the extent that we are unable to locate an adequate replacement or are unable to do so within a reasonable period of time, our business may be significantly and negatively affected. Our inability to provide collateral to certain counterparties on commercially acceptable terms as we grow could significantly and negatively affect our ability to implement our business strategy.
The amount of any reduction of votes that occurs by operation of the above limitations will generally be reallocated proportionately among our other shareholders 59 whose shares were not “controlled shares” of the 9.5% U.S. shareholder so long as such reallocation does not cause any person to become a 9.5% U.S. shareholder.
The amount of any reduction of votes that occurs by operation of the above limitations will generally be reallocated proportionately among our other shareholders whose shares were not “controlled shares” of the 9.5% U.S. shareholder so long as such reallocation does not cause any person to become a 9.5% U.S. shareholder.
See “Risks Relating to Taxation—If we were treated as a passive foreign investment company (“PFIC”) for U.S. federal income tax purposes, our U.S. shareholders would be subject to adverse tax consequences.” 34 Consolidation in the insurance and reinsurance industry could adversely impact us.
See “Risks Relating to Taxation—If we were treated as a passive foreign investment company (“PFIC”) for U.S. federal income tax purposes, our U.S. shareholders would be subject to adverse tax consequences.” Consolidation in the insurance and reinsurance industry could adversely impact us.
Both SiriusPoint’s investment income and the fair market value of its investment portfolio are affected by general economic and market conditions, including fluctuations in interest rates, foreign currency exchange rates, debt market levels, equity 49 market levels and market volatility. Our investment performance may also be affected by idiosyncratic factors for concentrated strategic and financial investment positions.
Both SiriusPoint’s investment income and the fair market value of its investment portfolio are affected by general economic and market conditions, including fluctuations in interest rates, foreign currency exchange rates, debt market levels, equity market levels and market volatility. Our investment performance may also be affected by idiosyncratic factors for concentrated strategic and financial investment positions.
Unanticipated higher inflation could also lead to additional interest rate increases, which would negatively impact the value of our fixed income securities and potentially other investments. To the extent higher inflation could lead to currency fluctuations, we may also experience increased volatility on foreign exchange gains and losses in our financial statements.
Unanticipated higher inflation could also lead to additional interest rate increases, which would negatively impact the value of our fixed income securities and potentially other investments. To the extent higher inflation could lead to currency fluctuations, we may also experience increased volatility in foreign exchange gains and losses in our financial statements.
We cannot predict in advance how many of our clients would exercise such rights in the event of a downgrade or withdrawal, but widespread exercise of these options could be materially adverse. A significant decrease in our capital or surplus would enable certain clients to terminate reinsurance agreements or to require additional collateral.
We cannot predict in advance how many of our clients would exercise such rights in the event of a downgrade or withdrawal, but widespread exercise of these options could be materially adverse. 38 A significant decrease in our capital or surplus would enable certain clients to terminate reinsurance agreements or to require additional collateral.
The revenues, income (or losses), and projected financial performance and valuations of venture growth stage companies can and often do fluctuate suddenly and dramatically. Our target venture growth stage companies may be geographically concentrated and are therefore 50 highly susceptible to materially negative local, political, natural and economic events.
The revenues, income (or losses), and projected financial performance and valuations of venture growth stage companies can and often do fluctuate suddenly and dramatically. Our target venture growth stage companies may be geographically concentrated and are therefore highly susceptible to materially negative local, political, natural and economic events.
Third-party modeling software also does not provide information for all regions or perils for which we write business. Catastrophe modeling is inherently uncertain due to process risk (the probability and magnitude of the underlying event) and parameter risk (the probability of making inaccurate model assumptions).
Third-party modeling software also does not provide information for all regions or 33 perils for which we write business. Catastrophe modeling is inherently uncertain due to process risk (the probability and magnitude of the underlying event) and parameter risk (the probability of making inaccurate model assumptions).
As a result, the insurance and reinsurance business historically has been a cyclical industry characterized by periods of intense price competition due to high levels of available underwriting capacity as well as periods when shortages of capacity have permitted favorable premium levels and changes in terms and conditions.
As a result, the insurance and reinsurance business historically has been a cyclical industry characterized by periods of intense price competition due to high levels of available underwriting capacity as well as periods when shortages of capacity 36 have permitted favorable premium levels and changes in terms and conditions.
In addition, 47 the insurance and re-insurance business written by some of the MGAs we partner with is inherently uncertain because these MGAs are typically early-stage ventures which may lack historical data, are growing rapidly and may represent new products, markets or technologies.
In addition, the insurance and re-insurance business written by some of the MGAs we partner with is inherently uncertain because these MGAs are typically early-stage ventures which may lack historical data, are growing rapidly and may represent new products, markets or technologies.
The supply of available insurance and reinsurance capital has increased over the past several years and may increase further, either as a result of capital provided by 39 new entrants, alternative capital providers or by the commitment of additional capital or retention of risks by existing insurers or reinsurers.
The supply of available insurance and reinsurance capital has increased over the past several years and may increase further, either as a result of capital provided by new entrants, alternative capital providers or by the commitment of additional capital or retention of risks by existing insurers or reinsurers.
In connection with obtaining letter of credit facilities, we are typically required to provide customary collateral to the letter of credit provider in order to secure our obligations under the facility. Our ability to provide collateral, and the costs at which we provide collateral, is primarily dependent on the composition of our collateral assets.
In connection with obtaining letter of credit facilities, we are typically required to provide customary collateral to the letter of credit provider in order to 39 secure our obligations under the facility. Our ability to provide collateral, and the costs at which we provide collateral, is primarily dependent on the composition of our collateral assets.
Regulatory and litigation risks include risks related to the outcome of legal and regulatory proceedings, regulatory constraints on SiriusPoint’s business, including legal restrictions on certain of SiriusPoint’s insurance and reinsurance subsidiaries’ ability to pay dividends and other distributions to SiriusPoint, and losses from unfavorable outcomes from litigation and other legal proceedings. • Investment Risks .
Regulatory and litigation risks include risks related to the outcome of legal and regulatory proceedings, regulatory constraints on SiriusPoint’s business, including legal restrictions on certain of 29 SiriusPoint’s insurance and reinsurance subsidiaries’ ability to pay dividends and other distributions to SiriusPoint, and losses from unfavorable outcomes from litigation and other legal proceedings. • Investment Risks .
Other risk and uncertainties listed in this Annual Report and any subsequent reports filed with the SEC. Risks Relating to Our Business We may not successfully implement our strategic transformation or fully realize the anticipated benefits from the transformation.
Other risks and uncertainties listed in this Annual Report and any subsequent reports filed with the SEC. Risks Relating to Our Business We may not successfully implement our strategic transformation or fully realize the anticipated benefits from the transformation.
We reduced the locations from which we underwrite property catastrophe reinsurance. We closed our offices in Hamburg, Miami and Singapore, and reduced our footprint in Liege and Toronto. Following these closures and the scaling of our operations, we will continue to serve clients and underwrite property catastrophe reinsurance business from Bermuda.
We reduced the locations from which we underwrite property catastrophe reinsurance. We closed our offices in Hamburg, Miami and Singapore, and reduced our footprint in Liege and Toronto. Following these closures and the scaling of our operations, we continue to serve clients and underwrite property catastrophe reinsurance business from Bermuda.
These measures were not enacted by Congress; however, new bills to create a federal catastrophe reinsurance program to back up state insurance or reinsurance programs, or to establish other similar or analogous funding mechanisms or structures, may be introduced.
These measures were not 37 enacted by Congress; however, new bills to create a federal catastrophe reinsurance program to back up state insurance or reinsurance programs, or to establish other similar or analogous funding mechanisms or structures, may be introduced.
The loss of our ability to be licensed in a jurisdiction, the damage to our commercial reputation and/or the payment of civil and/or criminal penalties could result in a material adverse effect on our business, financial condition and/or operating results. Damage to our reputation could have a material adverse effect on our business, financial condition and operating results.
The loss of our ability to be licensed in a jurisdiction, the damage to our commercial 44 reputation and/or the payment of civil and/or criminal penalties could result in a material adverse effect on our business, financial condition and/or operating results. Damage to our reputation could have a material adverse effect on our business, financial condition and operating results.
However, given the inherent uncertainty of modeling techniques and the application of such 35 techniques, these models and databases may not accurately address a variety of matters impacting our coverages. The construction of these models and the selection of assumptions requires significant actuarial judgement.
However, given the inherent uncertainty of modeling techniques and the application of such techniques, these models and databases may not accurately address a variety of matters impacting our coverages. The construction of these models and the selection of assumptions requires significant actuarial judgement.
Such impacts could include constraints on SiriusPoint's ability to move capital between subsidiaries or requirements that additional capital be provided to subsidiaries in certain jurisdictions, which may adversely impact SiriusPoint's profitability.
Such impacts could include constraints on SiriusPoint's ability to move capital between subsidiaries or requirements that additional capital be 47 provided to subsidiaries in certain jurisdictions, which may adversely impact SiriusPoint's profitability.
Changes in climate conditions have resulted in increased severity and frequency of weather-related natural disasters and catastrophes. For example, during the year ended December 31, 2023, the industry experienced several significant severe weather events. In addition, rising sea levels are expected to add to the risks associated with coastal flooding in many geographical areas.
Changes in climate conditions have resulted in increased severity and frequency of weather-related natural disasters and catastrophes. For example, during the year ended December 31, 2024, the industry experienced several significant severe weather events. In addition, rising sea levels are expected to add to the risks associated with coastal flooding in many geographical areas.
Based on our assets, income, applicable financial statements and activities, including those of our subsidiaries engaged in the active conduct of an insurance business, we do not expect that we will be treated as a PFIC in 2023. However, this conclusion is not free from doubt and the IRS could take a contrary position.
Based on our assets, income, applicable financial statements and activities, including those of our subsidiaries engaged in the active conduct of an insurance business, we do not expect that we will be treated as a PFIC in 2024. However, this conclusion is not free from doubt and the IRS could take a contrary position.
In addition, SiriusPoint may be impacted by changes in the political environment in Bermuda, which could make it difficult to operate in, or attract talent to, Bermuda. Bermuda is a small jurisdiction and may be disadvantaged in participating in global or cross border regulatory matters as compared with larger jurisdictions such as the U.S. or the leading EU countries.
In addition, SiriusPoint may be impacted by changes in the political environment in Bermuda, which could make it difficult to operate in, or attract talent to, Bermuda. Bermuda is a small jurisdiction and may be disadvantaged in participating in global or cross border regulatory matters as compared with larger jurisdictions such as the U.S. or the leading E.U. countries.
On January 1, 2024, the GloBE Rules went into effect in the EU, including a minimum top-up tax rate of 15% for multinational companies, with many EU member states enacting corollary legislation as part of their respective domestic tax laws. The United Kingdom enacted comparable legislation, also effective from January 1, 2024.
On January 1, 2024, the GloBE Rules went into effect in the EU, including a minimum top-up tax rate of 15% for multinational companies, with many E.U. member states enacting corollary legislation as part of their respective domestic tax laws. The United Kingdom enacted comparable legislation, also effective from January 1, 2024.
Terrorist acts may also cause multiple claims, and our attempts to limit our liability through contractual policy provisions may not be effective. 38 Global climate change may have a material adverse effect on our business, operating results and financial condition. We have material exposures arising from our coverages for natural disasters and catastrophes.
Terrorist acts may also cause multiple claims, and our attempts to limit our liability through contractual policy provisions may not be effective. 35 Global climate change may have a material adverse effect on our business, operating results and financial condition. We have material exposures arising from our coverages for natural disasters and catastrophes.
SiriusPoint devotes a significant amount of time and resources to complying with various regulatory requirements imposed in Bermuda, Sweden, the U.S., the EU and the U.K. and various other jurisdictions around the globe. There remains significant uncertainty as to the impact that these various regulations and legislation will have on SiriusPoint.
SiriusPoint devotes a significant amount of time and resources to complying with various regulatory requirements imposed in Bermuda, Sweden, the U.S., the E.U. and the U.K. and various other jurisdictions around the globe. There remains significant uncertainty as to the impact that these various regulations and legislation will have on SiriusPoint.
Prior to the enactment of the Bermuda CIT, many such 56 entities and businesses otherwise would have been exempt from income tax pursuant to the Exempted Undertakings Tax Protection Act 1966. Several of our entities are in scope of the Bermuda CIT, and we expect that they will be subject to the Bermuda CIT starting in 2025.
Prior to the enactment of the Bermuda CIT, many such entities would otherwise have been exempt from income tax pursuant to the Exempted Undertakings Tax Protection Act 1966. Several of our entities are in scope of the Bermuda CIT, and we expect that they will be subject to the Bermuda CIT starting in 2025.
Since 2017, the 141 member countries of the G20/OECD Inclusive Framework on BEPS have developed a two-pillar approach to address the tax challenges arising from the digitalization of the economy. “Pillar One” addresses nexus and profit allocation challenges, while “Pillar Two” addresses perceived base erosion.
Since 2017, the member countries of the G20/OECD Inclusive Framework on BEPS have developed a two-pillar approach to address the tax challenges arising from the digitalization of the economy. “Pillar One” addresses nexus and profit allocation 52 challenges, while “Pillar Two” addresses perceived base erosion.
Moreover, PFIC classification is a factual determination made annually, and even if we are not a PFIC in 2023, we could become a PFIC in later years. Accordingly, we cannot assure you that we will not be treated as a PFIC for 2023 or for any future year.
Moreover, PFIC classification is a factual determination made annually, and even if we are not a PFIC in 2024, we could become a PFIC in later years. Accordingly, we cannot assure you that we will not be treated as a PFIC for 2024 or for any future year.
SiriusPoint's activities are subject to extensive regulation under the laws and regulations of the U.S., the U.K., Bermuda, Sweden and the EU and its member states and the other jurisdictions in which SiriusPoint operates. SiriusPoint's operations in each of these jurisdictions are subject to varying degrees of regulation and supervision.
SiriusPoint's activities are subject to extensive regulation under the laws and regulations of the U.S., the U.K., Bermuda, Sweden and the E.U. and its member states and the other jurisdictions in which SiriusPoint operates. SiriusPoint's operations in each of these jurisdictions are subject to varying degrees of regulation and supervision.
In addition, we have offices in various jurisdictions such as the U.S., Canada, Bermuda, Germany, Belgium, the U.K., Singapore, Sweden and Switzerland, many of which may have residency and other mandatory requirements that may affect our personnel.
In addition, we have offices in various jurisdictions such as Belgium, Bermuda, Canada, Sweden, Switzerland, the U.K., and the U.S. many of which may have residency and other mandatory requirements that may affect our personnel.
We cannot assure you that we will be able to successfully implement our transformation initiatives.
We cannot assure you that we will be able to continue to successfully implement our transformation initiatives.
We may not have the liquidity or ability to raise the funds necessary to pay the principal or interest on our outstanding debt obligations. At maturity, the entire outstanding principal amount of our 2015 Senior Notes, 2016 Senior Notes, and 2017 SEK Subordinated Notes, plus any accrued and unpaid interest, will become due and payable.
We may not have the liquidity or ability to raise the funds necessary to pay the principal or interest on our outstanding debt obligations. At maturity, the entire outstanding principal amount of our 2017 SEK Subordinated Notes and 2024 Senior Notes, plus any accrued and unpaid interest, will become due and payable.
SiriusPoint’s investment portfolio is overseen in accordance with the investment policy and guidelines approved by the Investment Committee of the SiriusPoint board of directors. As of December 31, 2023, SiriusPoint’s investment portfolio consisted of fixed maturity investments, short-term investments, equity securities, other long-term investments, including hedge funds, private equity funds, and direct private equity investments, and Related Party Investment Funds.
SiriusPoint’s investment portfolio is overseen in accordance with the investment policy and guidelines approved by the Investment Committee of the SiriusPoint board of directors. As of December 31, 2024, SiriusPoint’s investment portfolio consisted of fixed maturity investments, short-term investments, other long-term investments, including hedge funds, private equity funds, and direct investments in equity, and related party investment funds.
The impact of the withdrawal of the U.K. from the EU in 2019/20, referred to as “Brexit”, on the U.K. economy continues to incrementally develop but has largely stabilized, however aspects of the post Brexit arrangements remain under review between the UK and EU and continue to develop.
The impact of the withdrawal of the U.K. from the E.U. in 2019/20, referred to as “Brexit”, on the U.K. economy continues to incrementally develop but has largely stabilized, however aspects of the post Brexit arrangements remain under review between the U.K. and E.U. and continue to develop.
Given the inherent uncertainty of models and software, their usefulness as a tool to evaluate risk is subject to a high degree of uncertainty that could result in actual losses that are materially different than our estimates including probable maximum losses (“PMLs”), and our financial results may be adversely impacted, perhaps significantly.
Given the inherent uncertainty of models and software, their usefulness as a tool to evaluate risk is subject to a high degree of uncertainty that could result in actual losses that are materially different than our estimates including PMLs, and our financial results may be adversely impacted, perhaps significantly.
In operating our business, we are experiencing the effects of inflation. Furthermore, our operations, like those of other insurers and reinsurers, are susceptible to the effects of inflation because premiums are established before the ultimate amounts of losses and loss expenses are known.
In operating our business, we are continuing to experience the effects of inflation. Furthermore, our operations, like those of other insurers and reinsurers, are susceptible to the effects of inflation because premiums are established before the ultimate amounts of losses and loss expenses are known.
Our debt combined with our other financial obligations and contractual commitments could have significant adverse consequences, including: • requiring us to dedicate a substantial portion of cash flow from operations to the payment of interest on, and principal of, our debt and payment of other obligations and commitments, which will reduce the amounts available to fund working capital, the expansion of our business and other general corporate purposes; • increasing our vulnerability to adverse changes in general economic, industry and market conditions, and exposing us to the risk of changing interest rates; • obligating us to additional restrictive covenants that may reduce our ability to take certain corporate actions or obtain further debt or equity financing; • making it more difficult for us to make payments on our existing or future obligations; • limiting our flexibility in planning for, or reacting to, changes in our business and the industry in which we compete; and • placing us at a competitive disadvantage compared to our competitors that have less debt or better debt servicing options. 44 In addition, a failure to comply with the covenants under our debt instruments could result in an event of default under those instruments.
Our debt combined with our other financial obligations and contractual commitments could have significant adverse consequences, including: • requiring us to dedicate a substantial portion of cash flow from operations to the payment of interest on, and principal of, our debt and payment of other obligations and commitments, which will reduce the amounts available to fund working capital, the expansion of our business and other general corporate purposes; • increasing our vulnerability to adverse changes in general economic, industry and market conditions, and exposing us to the risk of changing interest rates; • obligating us to additional restrictive covenants that may reduce our ability to take certain corporate actions or obtain further debt or equity financing; • making it more difficult for us to make payments on our existing or future obligations; • limiting our flexibility in planning for, or reacting to, changes in our business and the industry in which we compete; and • placing us at a competitive disadvantage compared to our competitors that have less debt or better debt servicing options.
We have significant foreign operations that expose us to certain additional risks, including foreign currency risks and legal, political and operational risks. Through our multinational reinsurance operations, we conduct business in a variety of non-U.S. currencies, the principal exposures being the Swedish Krona, British Pound Sterling, Euro, Canadian Dollar, Japanese Yen and Swiss Franc.
We have significant foreign operations that expose us to certain additional risks, including foreign currency risks and legal, political and operational risks. Through our multinational reinsurance operations, we conduct business in a variety of non-U.S. currencies, the principal exposures being the Swedish Krona, British Pound Sterling, Euro, Canadian Dollar and Australian Dollar.
Efforts to pursue certain investment opportunities may be unsuccessful or require significant financial or other resources, which could have a negative impact on our operating results and financial condition. We face risks associated with delegating authority to third party managing general agents (“MGAs”) to secure insurance and reinsurance policies on our behalf.
Efforts to pursue certain investment opportunities may be unsuccessful or require significant financial or other resources, which could have a negative impact on our operating results and financial condition. We face risks associated with delegating authority to third party MGAs to secure insurance and reinsurance policies on our behalf.
Accordingly, our short-term results of operations may not be indicative of our long-term prospects as we continue to de-risk our underwriting portfolio. We may continue to be adversely impacted by inflation. In 2023, economies around the world experienced heightened levels of inflation, which caused central banks to respond by raising interest rates.
Accordingly, our short-term results of operations may not be indicative of our long-term prospects as we continue to de-risk our underwriting portfolio. We may continue to be adversely impacted by inflation. In 2024, economies around the world continued to experience heightened levels of inflation, which caused central banks to respond by raising interest rates.
Investment risks include reduced returns or losses in SiriusPoint’s investment portfolio; our lack of control over our third party asset managers, who invest and manage our capital accounts, limitations on our ability to withdraw our capital accounts and conflicts of interest among various members of TP GP, Third Point LLC and SiriusPoint. • Taxation Risks .
Investment risks include reduced returns or losses in SiriusPoint’s investment portfolio; our lack of control over our third party asset managers, who invest and manage our capital accounts, limitations on our ability to withdraw our capital accounts and conflicts of interest among various members of Third Point Advisors LLC (“TP GP”), Third Point LLC and SiriusPoint. • Taxation Risks .
If Third Point LLC were not our investment manager, we would potentially be required to liquidate our Collateral Asset Account and we would seek to identify and retain another investment manager with a similar investment philosophy. Pursuant to the 2022 LPA, other than in certain specified circumstances, we cannot engage another investment manager without Third Point LLC’s consent.
If Third Point LLC were not our investment manager, we would potentially be required to liquidate our Collater al Asset Account and we would seek to identify and retain another investment manager with a similar investment philosophy. Pursuant to the 2022 LPA, other t han in certain specified circumstances, we cannot engage another investment manager without Third Point LLC’s consent.
As of December 31, 2023, approximately 25 million common shares were reserved for issuance under our current share incentive plans and in connection with restricted share award agreements entered into between us and certain of our employees and directors. In addition, as of December 31, 2023, there were share options outstanding (subject to vesting) for approximately 4 million common shares.
As of December 31, 2024, approximately 21 million common shares were reserved for issuance under our current share incentive plans and in connection with restricted share award agreements entered into between us and certain of our employees and directors. In addition, as of December 31, 2024, there were share options outstanding (subject to vesting) for approximately 2 million common shares.
The indentures governing the 2015 Senior Notes, 2017 SEK Subordinated Notes and 2016 Senior Notes do not limit the amount of additional indebtedness we may incur.
The indentures governing the 2017 SEK Subordinated Notes and 2024 Senior Notes do not limit the amount of additional indebtedness we may incur.
We are required to maintain effective disclosure controls and procedures and internal control over financial reporting. Effective internal controls are necessary for us to provide reliable financial reports and prevent fraud. Our management does not expect that our disclosure controls or our internal controls over financial reporting will prevent all errors and all fraud.
Effective internal controls are necessary for us to provide reliable financial reports and prevent fraud. Our management does not expect that our disclosure controls or our internal controls over financial reporting will prevent all errors and all fraud.
In response to, and in alignment with, the GloBE Rules, the government of Bermuda enacted the Corporate Income Tax Act 2023 (the “Bermuda CIT”) on December 27, 2023. The Bermuda CIT generally will impose a 15% income tax on certain Bermudian entities and businesses effective from January 1, 2025.
In response to, and in alignment with, the GloBE Rules, the government of Bermuda enacted the Corporate Income Tax Act 2023 (the “Bermuda CIT”) on December 27, 2023. The Bermuda CIT generally will impose a 15% income tax on certain Bermudian entities that are part of large multinational groups effective from January 1, 2025.
We market our reinsurance worldwide primarily through reinsurance brokers. Loss of all or a substantial portion of the business provided by one or more of significant reinsurance brokers could have a material adverse effect on our business.
Loss of all or a substantial portion of the business provided by one or more of significant reinsurance brokers could have a material adverse effect on our business.
While we expect that our insurance subsidiaries will qualify for the active insurance income exception for qualified insurance corporations, in light of pending regulations and in the absence of other detailed guidance, our insurance subsidiaries may not meet the requirements for this exception.
While we expect that our insurance subsidiaries will qualify for the active insurance income exception for qualifying insurance corporations, in the absence of other detailed guidance, our insurance subsidiaries may not meet the requirements for this exception.
As a result of the concentration of ownership, CM Bermuda, the Loeb Entities and BlackRock, Inc. could 57 exercise influence over matters requiring shareholder approval, including approval of significant corporate transactions, which may reduce the market price of our common shares. The interests of the shareholders specified above may conflict with the interests of our other shareholders.
As a result of the concentration of ownership, CM Bermuda, the Loeb Entities and BlackRock, Inc. could exercise influence over matters requiring shareholder approval, including approval of significant corporate transactions, which may reduce the market price of our common shares.
Loeb, who serves as a director on our Board and is the Founder and Chief Executive Officer of Third Point LLC, are obligated to devote any specific amount of time, effort or investment opportunities to our investments. Daniel S.
Loeb, who serves as a director on our Board and is the Founder and Chief Executive Officer of Third Point LLC, are obligated to devote any specific amount of time, effort or investment opportunities to our investments. Daniel S. Loeb’s service to both companies may create, or may create the appearance of, conflicts of interest.
Our failure to pay interest when due, if uncured for 30 days, or our failure to pay the principal amount when due, will constitute an event of default under the indentures governing the 2015 Senior Notes, 2016 Senior Notes and the 2017 SEK Subordinated Notes.
Our failure to pay interest when due, if uncured for 30 days, or our failure to pay the principal amount when due, will constitute an event of default under the indentures governing the 2017 SEK Subordinated Notes and 2024 Senior Notes. A default under the indentures could also lead to a default under agreements governing our indebtedness.
Competition risks include risks related to our ability to compete successfully in the insurance and reinsurance market and the effect of consolidation in the insurance and reinsurance industry. • Cyber Risks .
Competition risks include risks related to our ability to compete successfully in the insurance and reinsurance market and the effect of consolidation in the insurance and reinsurance industry. • Operational Risks. Operational risks include risks related to retention of key employees and internal controls. • Cyber Risks .
We may not have enough available cash or be able to obtain sufficient financing at the time we are required to make these payments. Furthermore, our ability to make these payments may be limited by law, by regulatory authority or by agreements governing our indebtedness.
We must pay interest in cash on the notes quarterly, or semi-annually as applicable. 41 We may not have enough available cash or be able to obtain sufficient financing at the time we are required to make these payments. Furthermore, our ability to make these payments may be limited by law, by regulatory authority or by agreements governing our indebtedness.
We rely on an exception under the Investment Company Act that is available to a company organized and regulated as a foreign insurance company which is engaged primarily and predominantly in the reinsurance of risks on insurance agreements.
The Investment Company Act of 1940, as amended (the “Investment Company Act”), regulates certain companies that invest in or trade securities. We rely on an exception under the Investment Company Act that is available to a company organized and regulated as a foreign insurance company which is engaged primarily and predominantly in the reinsurance of risks on insurance agreements.
We will be treated as a PFIC for U.S. federal income tax purposes in any taxable year for which either (i) at least 75% of our gross income consists of certain types of "passive income" or (ii) at least 50% of the average value of our assets produce, or are held for the production of, passive income.
In the event we are classified as a PFIC in the future, we strongly encourage our shareholders to consult with their own tax advisors with regard to any available tax elections. 51 We will be treated as a PFIC for U.S. federal income tax purposes in any taxable year for which either (i) at least 75% of our gross income consists of certain types of "passive income" or (ii) at least 50% of the average value of our assets produce, or are held for the production of, passive income.
A client may choose to exercise these rights depending on, among other things, the reasons for such a downgrade, the extent of the downgrade, the prevailing market conditions, the degree of unexpired coverage, and the pricing and availability of replacement reinsurance coverage.
A downgrade may also require us to establish trusts or post letters of credit for ceding company clients. A client may choose to exercise these rights depending on, among other things, the reasons for such a downgrade, the extent of the downgrade, the prevailing market conditions, the degree of unexpired coverage, and the pricing and availability of replacement reinsurance coverage.
A default under the indentures could also lead to a default under agreements governing our indebtedness. If the repayment of that indebtedness is accelerated as a result, then we may not have sufficient funds to repay that indebtedness or to pay the principal or interest on the 2015 Senior Notes, 2016 Senior Notes and the 2017 SEK Subordinated Notes.
If the repayment of that indebtedness is accelerated as a result, then we may not have sufficient funds to repay that indebtedness or to pay the principal or interest on the 2017 SEK Subordinated Notes and 2024 Senior Notes.
We may not be able to successfully implement, or fully realize the anticipated positive impact of, our transformation initiatives, or execute successfully on our transformation strategy, in the expected timeframes or at all.
We may not be able to successfully implement, or fully realize the anticipated positive impact of, our transformation initiatives, or execute successfully on our transformation strategy, in the expected timeframes or at all. In addition, our efforts, if properly executed, may not result in our desired outcome of improved financial performance.
The 2022 LPA provides for the following two forms of compensation to be paid to Third Point LLC and TP GP: • Third Point LLC is entitled to a monthly management fee equal to 1.25% of the investment in TP Enhanced Fund (determined as of the beginning of the month before the accrual of the performance allocation) multiplied by an exposure multiplier; and • TP GP is entitled to performance compensation equal to 20% of net profits, subject to the management fee and a loss carryforward provision.
The 2022 LPA provides for the following two forms of compensation to be paid to Third Point LLC and TP GP: • Third Point LLC is entitled to a monthly management fee equal to 1.25% of the investment in TP Enhanced Fund (determined as of the beginning of the month before the accrual of the performance allocation) multiplied by an exposure multiplier; and • TP GP is entitled to performance compensation equal to 20% of net profits, subject to the management fee and a loss carryforward provision. 45 While the performance compensation arrangement provides that losses will be carried forward as an offset against net profits in subsequent periods, Third Point LLC generally will not otherwise be penalized for realized losses or decreases in the value of TP Enhanced Fund’s portfolio.
As of December 31, 2023, CM Bermuda Ltd. (“CM Bermuda”), Daniel S. Loeb and affiliates associated with Mr. Loeb (collectively, the “Loeb Entities”) and BlackRock, Inc. beneficially own approximately 32.6%, 9.0% and 7.7% of our issued and outstanding common shares, respectively.
As of December 31, 2024, CM Bermuda, Daniel S. Loeb and affiliates associated with Mr. Loeb (collectively, the “Loeb Entities”) and BlackRock, Inc. beneficially own approximately 28.2%, 9.4% and 9.3% of our issued and outstanding common shares, respectively.
We may be unable to purchase reinsurance for the liabilities we reinsure, and if we successfully purchase such reinsurance, we may be unable to collect, which could adversely affect our business, financial condition and results of operations.
Consequently, we assume a degree of credit risk associated with reinsurance brokers around the world. 42 We may be unable to purchase reinsurance for the liabilities we reinsure, and if we successfully purchase such reinsurance, we may be unable to collect, which could adversely affect our business, financial condition and results of operations.
However, the applicable tax laws in relevant countries are still evolving, including in connection with guidance and proposals from the OECD.
However, the applicable tax laws in relevant countries are still evolving, including in connection with guidance and proposals from the Organisation for Economic Co-Operation and Development (“OECD”).
Conversely, we may prove to be too conservative which could contribute to factors which would impede our ability to grow in respect of new markets or perils or in connection with our current portfolio of coverages. 36 We are exposed to unpredictable catastrophic events that have adversely affected, and may in the future affect our results of operations and financial condition.
Accordingly, we may underestimate the exposures we are assuming and our results of operations and financial condition may be adversely impacted, perhaps significantly. Conversely, we may prove to be too conservative which could contribute to factors which would impede our ability to grow in respect of new markets or perils or in connection with our current portfolio of coverages.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeItem 1C. Cybersecurity The Company is subject to several cybersecurity and data privacy laws and regulations promulgated by the BMA, New York State Department of Financial Services (“NYDFS”) and EU. The Company’s risk management program is designed to comply with these laws and regulations.
Biggest changeItem 1C. Cybersecurity The Company is subject to several cybersecurity and data privacy laws and regulations promulgated by the BMA, NYDFS, E.U. and U.K. The Company’s risk management program is designed to comply with these laws and regulations. The Board is responsible for overseeing the Company’s risk management program and cybersecurity is a critical element of this program.
The Company conducts periodic tabletop exercises to test these plans and ensure personnel are familiar with their roles in a response scenario. 61 • Third-Party Risk Management: The Company maintains a risk-based approach to identifying and overseeing material cybersecurity threats presented by third parties, including our MGA and TPA partners, that could adversely impact our business in the event of a material cybersecurity incident affecting those third-party systems. • Education and Awareness: The Company conducts regular, mandatory training and simulated phishing campaigns for all levels of employees regarding cybersecurity threats as a means to equip the Company’s employees with effective tools to address cybersecurity threats, and to communicate the Company’s evolving information security policies, standards, processes, and practices.
The Company conducts periodic tabletop exercises to test these plans and ensure personnel are familiar with their roles in a response scenario. • Third-Party Risk Management: The Company maintains a risk-based approach to identifying and overseeing material cybersecurity threats presented by third parties, including our MGA and TPA partners, that could adversely impact our business in the event of a material cybersecurity incident affecting those third-party systems. • Education and Awareness: The Company conducts regular, mandatory training and simulated phishing campaigns for all levels of employees regarding cybersecurity threats as a means to equip the Company’s employees with effective tools to address cybersecurity threats, and to communicate the Company’s evolving information security policies, standards, processes, and practices.
On a quarterly basis, the Board and the Risk Capital Management Committee discuss the Company’s approach to overseeing cybersecurity threats with the Company’s Chief Information Security Officer (“CISO”) and other members of senior management.
On a quarterly basis, the Board and the Risk Capital 58 Management Committee discuss the Company’s approach to overseeing cybersecurity threats with the Company’s Chief Information Security Officer (“CISO”) and other members of senior management.
Material Effects of Cybersecurity Incidents Risks as a result of any previous cybersecurity threats and incidents, have not materially affected and are not reasonably likely to materially affect the Company, including its business strategy, results of operations, or financial condition.
Material Effects of Cybersecurity Incidents Risks as a result of any known cybersecurity threats and incidents, have not materially affected and are not reasonably likely to materially affect the Company, including its business strategy, results of operations, or financial condition.
The Company’s cybersecurity policies, standards, processes, and practices are based on the framework established by the National Institute of Standards and Technology, and are integrated into the Company’s overall risk management system and processes.
Management is responsible for the day-to-day administration of the Company’s risk management program and its cybersecurity policies, processes, and practices. The Company’s cybersecurity policies, standards, processes, and practices 57 are based on the framework established by the National Institute of Standards and Technology, and are integrated into the Company’s overall risk management system and processes.
Removed
The Board is responsible for overseeing the Company’s risk management program and cybersecurity is a critical element of this program. Management is responsible for the day-to-day administration of the Company’s risk management program and its cybersecurity policies, processes, and practices.
Added
Given the increasing sophistication of cybersecurity threats, including those leveraging artificial intelligence, the Company regularly reviews and updates its strategies and technologies to ensure they remain effective in the face of emerging threats.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeItem 2. Properties The Company leases office space in Pembroke, Bermuda where the Company’s principal executive office is located. Additionally, the Company leases office space throughout the United States, Canada and Europe. We renew and enter into new leases in the ordinary course of business.
Biggest changeItem 2. Properties The Company leases office space in Pembroke, Bermuda where the Company’s principal executive office is located. Additionally, the Company leases office space throughout the United States, Canada, United Kingdom and Europe. We renew and enter into new leases in the ordinary course of business.
We believe that our office space is sufficient for us to conduct our operations 62 for the foreseeable future. For further discussion of our leasing commitments at December 31, 2023, refer to Note 21 “Commitments and contingencies” in our audited consolidated financial statements included elsewhere in this Annual Report.
We believe that our office space is sufficient for us to conduct our operations for the foreseeable future. For further discussion of our leasing commitments at December 31, 2024, refer to Note 21 “Commitments and contingencies” in our audited consolidated financial statements included elsewhere in this Annual Report.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeThe Company believes that no individual litigation or arbitration to which it is presently a party is likely to have a material adverse effect on its results of operations, financial condition, business or operations. Item 4. Mine Safety Disclosures Not applicable. PART II
Biggest changeThe Company believes that no individual litigation or arbitration to which it is presently a party is likely to have a material adverse effect on its results of operations, financial condition, business or operations. Item 4. Mine Safety Disclosures Not applicable. 59 PART II

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeItem 4. Mine Safety Disclosures 63 PART II 63 Item 5. Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities 63 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 64 Item 7A. Quantitative and Qualitative Disclosures About Market Risk 92
Biggest changeItem 4. Mine Safety Disclosures 59 PART II 60 Item 5. Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities 60 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 61 Item 7A. Quantitative and Qualitative Disclosures About Market Risk 87

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeThe CVRs were settled upon maturity on February 26, 2023, and are no longer available for repurchase. As of December 31, 2023, the Company was authorized repurchase up to an aggregate of $56.3 million of its outstanding common shares and warrants under its repurchase program.
Biggest changeThe share repurchase program does not have an expiration date. On December 18, 2024, the Company’s Board of Directors authorized an additional share repurchase from CM Bermuda under the CMIG Securities Purchase Agreement. As of December 31, 2024 the Company was au thorized to repurchase up to an aggregate of $181.3 million of outstanding common shares under its repurchase program.
Performance The following graph compares the cumulative total shareholder return on our common shares as compared to the cumulative total return of (1) S&P 500 Composite Stock Index (“S&P 500”) and (2) the Dow Jones Property & Casualty Insurance Index 63 (“Dow Jones P&C”) for the five year period commencing December 31, 2018 through to December 31, 2023.
Performance The following graph compares the cumulative total shareholder return on our common shares as compared to the cumulative total return of (1) S&P 500 Composite Stock Index (“S&P 500”) and (2) the Dow Jones Property & Casualty Insurance Index (“Dow Jones P&C”) for the five year period commencing December 31, 2018 through to December 31, 2024.
The above graph assumes that the value of the investment was $100 on December 31, 2018. 2.
The above graph assumes that the value of the investment was $100 on December 31, 2019. 2.
Item 5. Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities Market Information Our common shares are listed on the NYSE under the symbol “SPN T”. On February 23, 2024 , the latest practicable date, there were 306 holders of record of our common shares.
Item 5. Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities Market Information Our common shares are listed on the NYSE under the symbol “SPNT”. On February 18, 2025, the latest practicable date, there were 278 holders of record of our common shares.
Issuer Purchases of Equity Securities During the year ended December 31, 2023, the Company did not repurchase any of its common shares. During the year ended December 31, 2022, the Company repurchased 695,047 of its common shares in the open market for $5.0 million at a weighted average cost, including commissions, of $7.17 per share.
During the year ended December 31, 2022, the Company repurchased 695,047 of its common shares in the open market for $5.0 million at a weighted average cost, including commissions, of $7.17 per share. Common shares repurchased by the Company during the period were retired.
Removed
December 31, 2018 December 31, 2019 December 31, 2020 December 31, 2021 December 31, 2022 December 31, 2023 t SPNT $ 100.00 $ 109.13 $ 98.76 $ 84.34 $ 61.20 $ 120.33 ■S&P 500 $ 100.00 $ 128.88 $ 149.83 $ 190.13 $ 153.16 $ 190.27 p Dow Jones P&C $ 100.00 $ 124.64 $ 125.83 $ 149.79 $ 169.39 $ 189.44 1.
Added
December 31, 2019 December 31, 2020 December 31, 2021 December 31, 2022 December 31, 2023 December 31, 2024 t SPNT $ 100.00 $ 90.49 $ 77.28 $ 56.08 $ 110.27 $ 155.80 ■S&P 500 $ 100.00 $ 116.26 $ 147.52 $ 118.84 $ 147.64 $ 182.05 p Dow Jones P&C $ 100.00 $ 100.95 $ 120.18 $ 135.90 $ 151.99 $ 199.76 1.
Removed
Common shares repurchased by the Company during the period were retired. During the year ended December 31, 2021 the Company did not repurchase any of its common shares. On August 5, 2021, the Company’s Board of Directors expanded the scope of the prior authority to include the repurchase of outstanding contingent value rights ("CVRs") and warrants.
Added
Issuer Purchases of Equity Securities During the year ended December 31, 2024, the Company repurchased 54,798,437 of its common shares from CM Bermuda for $776.5 million, including $483.0 million to be paid at the closing of the transaction on or before February 28, 2025.
Added
For further details, see Note 3 “Significant transactions” in our audited consolidated financial statements included elsewhere in this Annual Report. 60 During the year ended December 31, 2023 the Company did not repurchase any of its common shares.
Added
On July 31, 2024, the Company’s Board of Directors authorized the Company to repurchase up to an additional $250.0 million of the Company’s common shares, which, together with the amount remaining available under the share repurchase programs previously authorized on May 4, 2016 and February 28, 2018, will allow the Company to repurchase up to $306.3 million of its common shares in the aggregate.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeThe following table sets forth underwriting results, net MGA results, and ratios for the segment results, and the year over year changes for the years ended December 31, 2023 and 2022: 2023 2022 Change ($ in millions) Gross premiums written $ 2,039.7 $ 1,884.2 $ 155.5 Net premiums written 1,282.7 1,346.0 (63.3) Net premiums earned 1,249.2 1,086.8 162.4 Loss and loss adjustment expenses incurred, net 815.4 718.7 96.7 Acquisition costs, net 295.5 273.2 22.3 Other underwriting expenses 94.3 62.8 31.5 Underwriting income 44.0 32.1 11.9 Services revenues 238.6 215.7 22.9 Services expenses 187.8 179.2 8.6 Net services fee income 50.8 36.5 14.3 Services noncontrolling (income) loss (8.5) 1.1 (9.6) Net services income 42.3 37.6 4.7 Segment income $ 86.3 $ 69.7 $ 16.6 Underwriting Ratios: (1) Loss ratio 65.3 % 66.1 % (0.8) % Acquisition cost ratio 23.7 % 25.1 % (1.4) % Other underwriting expenses ratio 7.5 % 5.8 % 1.7 % Combined ratio 96.5 % 97.0 % (0.5) % (1) Underwriting ratios are calculated by dividing the related expense by net premiums earned.
Biggest changeThe following table sets forth underwriting results, net MGA results, and ratios for the segment results, and the year over year changes for the years ended December 31, 2024 and 2023: 2024 2023 Change ($ in millions) Gross premiums written $ 1,840.8 $ 2,039.7 $ (198.9) Net premiums written 1,236.2 1,282.7 (46.5) Net premiums earned 1,154.0 1,249.2 (95.2) Loss and loss adjustment expenses incurred, net 714.1 815.4 (101.3) Acquisition costs, net 284.7 295.5 (10.8) Other underwriting expenses 80.0 94.3 (14.3) Underwriting income 75.2 44.0 31.2 Services revenues 222.9 238.6 (15.7) Services expenses 176.2 187.8 (11.6) Net services fee income 46.7 50.8 (4.1) Services noncontrolling income (2.1) (8.5) 6.4 Net services income 44.6 42.3 2.3 Segment income $ 119.8 $ 86.3 $ 33.5 Underwriting Ratios: (1) Loss ratio 61.9 % 65.3 % (3.4) % Acquisition cost ratio 24.7 % 23.7 % 1.0 % Other underwriting expenses ratio 6.9 % 7.5 % (0.6) % Combined ratio 93.5 % 96.5 % (3.0) % (1) Underwriting ratios are calculated by dividing the related expense by net premiums earned. 74 Premium Volume Gross premiums written in the Insurance & Services segment decreased by $198.9 million, or 9.8%, for the year ended December 31, 2024 compared to the year ended December 31, 2023, primarily driven by the movement of certain lines from Insurance & Services to Corporate, including the non-renewal of a Workers’ Compensation program and the planned transition of a Cyber program to another carrier, representing $421.8 million of gross premiums written for the year ended December 31, 2023, as well as lower A&H premiums, partially offset by strategic organic and new program growth.
Insurance & Services revenue allows us to diversify our traditional reinsurance portfolio and generally has lower capital requirements. In addition, service fees from MGAs and their insurance provided are generally not as prone to the volatile underwriting cycle that is common in reinsurance marketplace.
Insurance & Services revenue allows us to diversify our traditional reinsurance portfolio and generally has lower capital requirements. In addition, service fees from MGAs and their insurance provided are generally not as prone to the volatile underwriting cycle that is common in the reinsurance marketplace.
Amortization patterns are based on the period over which they are expected to generate future net cash inflows from the use of the underlying intangible assets. Interest Expense Interest expense and finance costs are related to interest due on our senior and subordinated notes, as as well as interest associated with certain reinsurance contracts.
Amortization patterns are based on the period over which they are expected to generate future net cash inflows from the use of the underlying intangible assets. Interest Expense Interest expense and finance costs are related to interest due on our senior and subordinated notes, as well as interest associated with certain reinsurance contracts.
Financing Activities Cash flows used in financing activities for the year ended December 31, 2023 primarily consisted of $38.5 million for the settlement of CVRs, $18.0 million for the repayment of loans related to repurchase agreements, $16.0 million for cash dividends paid to preference shareholders, $11.5 million for taxes paid on withholding shares and $6.1 million for payments on deposit liability contracts, partially offset by $27.8 million of proceeds from the exercise warrants and options.
Cash flows used in financing activities for the year ended December 31, 2023 primarily consisted of $38.5 million for the settlement of CVRs, $18.0 million for the repayment of loans related to repurchase agreements, $16.0 million for cash dividends paid to preference shareholders, $11.5 million for taxes paid on withholding shares and $6.1 million for payments on deposit liability contracts, partially offset by $27.8 million of proceeds from the exercise warrants and options.
The determination of premium estimates requires a review of the Company's experience with the ceding companies and MGAs, familiarity with each market, the timing of the reported information, an analysis and understanding of the characteristics of each class of business and management's judgment of the impact of various factors, including premium or loss trends, on the volume of business written and ceded to the Company.
The determination of premium estimates requires a review of the Company's experience with the ceding companies and MGAs, familiarity with each market, the timing of the reported information, an analysis and understanding of the characteristics of each class of business and management's judgment of the 82 impact of various factors, including premium or loss trends, on the volume of business written and ceded to the Company.
Such measures, including Core underwriting income, Core net services income, Core income, Core combined ratio, accident year loss ratio, accident year combined ratio, attritional loss ratio and tangible book value per diluted common share, are referred to as non-GAAP financial measures. These non-GAAP financial measures may be defined or calculated differently by other companies.
Such measures, including Underlying income, Core underwriting income, Core net services income, Core income, Core combined ratio, accident year loss ratio, accident year combined ratio, attritional loss ratio and tangible book value per diluted common share, are referred to as non-GAAP financial measures. These non-GAAP financial measures may be defined or calculated differently by other companies.
On 85 an ongoing basis, the Company's underwriters review the amounts reported by these third parties for reasonableness based on their experience and knowledge of the subject class of business, taking into account the Company's historical experience with the brokers, ceding companies or MGAs .
On an ongoing basis, the Company's underwriters review the amounts reported by these third parties for reasonableness based on their experience and knowledge of the subject class of business, taking into account the Company's historical experience with the brokers, ceding companies or MGAs .
In order to quantify the potential volatility in the loss reserve estimates, SiriusPoint employs a stochastic simulation approach to produce a range of results around the central estimate and estimated probabilities of possible outcomes. Both the probabilities and the related 88 modeling are subject to inherent uncertainties.
In order to quantify the potential volatility in the loss reserve estimates, SiriusPoint employs a stochastic simulation approach to produce a range of results around the central estimate and estimated probabilities of possible outcomes. Both the probabilities and the related modeling are subject to inherent uncertainties.
The simulation relies on a significant number of assumptions, such as variation in historical loss development patterns and industry losses for major events, potential mis-estimation of the initial expected loss ratios during the pricing process, and unanticipated inflation.
The simulation relies on a significant number of assumptions, such as variation 85 in historical loss development patterns and industry losses for major events, potential mis-estimation of the initial expected loss ratios during the pricing process, and unanticipated inflation.
If we raise cash through the issuance of additional 81 indebtedness, we may be subject to additional contractual restrictions on our business. There is no assurance that we would be able to raise the additional funds on favorable terms or at all.
If we raise cash through the issuance of additional indebtedness, we may be subject to additional contractual restrictions on our business. There is no assurance that we would be able to raise the additional funds on favorable terms or at all.
Return on Average Common Shareholders’ Equity Attributable to SiriusPoint Common Shareholders Return on average common shareholders’ equity attributable to SiriusPoint common shareholders is calculated by dividing net income (loss) available to SiriusPoint common shareholders for the year by the average common shareholders’ equity determined using the common shareholders' equity balances at the beginning and end of the year.
Return on Average Common Shareholders’ Equity Attributable to SiriusPoint Common Shareholders Return on average common shareholders’ equity attributable to SiriusPoint common shareholders is calculated by dividing net income available to common shareholders for the year by the average common shareholders’ equity determined using the common shareholders' equity balances at the beginning and end of the year.
The tangible book value per diluted common share is also useful because it provides a more accurate measure of the realizable value of shareholder returns, excluding intangible assets.
Tangible book value per diluted common share is useful because it provides a more accurate measure of the realizable value of shareholder returns, excluding intangible assets.
Claim payments can also be required several months or years after premiums are collected. In addition, as discussed above, SiriusPoint has access to the $300.0 million Facility that provides access to loans for working capital and general corporate purposes, and letters of credit to support obligations under insurance and reinsurance agreements and retrocessional agreements.
Claim payments can also be required several months or years after premiums are collected. In addition, as discussed above, SiriusPoint has access to the $400.0 million Facility that provides access to loans for working capital and general corporate purposes, and letters of credit to support obligations under insurance and reinsurance agreements, retrocessional agreements and for general corporate purposes.
To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires significantly more judgment. See Note 7 “Fair value measurements” to our audited consolidated financial statements for additional information on the framework for measuring fair value established by U.S. GAAP disclosure requirements.
To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires significantly more judgment. See Note 6 “Fair value measurements” to our audited consolidated financial statements for additional information on the framework for measuring fair value established by U.S. GAAP disclosure requirements.
See definitions in “Non-GAAP Financial Measures” and reconciliations in “Segment Results” below and Note 5 “Segment reporting” in our audited consolidated financial statements included elsewhere in this Annual Report. Tangible book value per diluted common share is a non-GAAP financial measure. See definition and reconciliation in “Non-GAAP Financial Measures”. Core Results See “Segment Results” below for additional information.
See definitions in “Non-GAAP Financial Measures” and reconciliations in “Segment Results” below and Note 4 “Segment reporting” in our audited consolidated financial statements included elsewhere in this Annual Report. Tangible book value per diluted common share is a non-GAAP financial measure. See definition and reconciliation in “Non-GAAP Financial Measures”. Core Results See “Segment Results” below for additional information.
Each restricts issuance of any debt without the consent of the letter of credit provider. Additionally, if an event of default exists, under any of the letter of credit facilities, our subsidiaries could be prohibited from paying dividends. We were in compliance with all of the covenants under the aforementioned letter of credit facilities as of December 31, 2023.
Each restricts issuance of any debt without the consent of the letter of credit provider. Additionally, if an event of default exists, under any of the letter of credit facilities, our subsidiaries could be prohibited from paying dividends. We were in compliance with all of the covenants under the aforementioned letter of credit facilities as of December 31, 2024.
We rely heavily on information reported by MGAs and ceding companies, as discussed above. In order to determine the accuracy and completeness of such information, our underwriters, actuaries, and claims personnel perform audits of certain MGAs and ceding companies, where customary. Any material findings are discussed with the ceding companies.
We rely heavily on information reported by MGAs and ceding companies, as discussed above. In order to determine the accuracy and completeness of such information, our underwriters, actuaries, and claims advocates perform audits of certain MGAs and ceding companies, where customary. Any material findings are discussed with the ceding companies.
See Note 15 “Debt and letter of credit facilities” in our audited consolidated financial statements included elsewhere in this Annual Report for additional information. Cash Secured Letter of Credit Agreements Under the cash secured letter of credit facilities, we provide collateral that consists of cash and cash equivalents and debt securities.
See Note 14 “Debt and letter of credit facilities” in our audited consolidated financial statements included elsewhere in this Annual Report for additional information. Cash Secured Letter of Credit Agreements Under the cash secured letter of credit facilities, we provide collateral that consists of cash and cash equivalents and debt securities.
As of December 31, 2023 , the carrying value of the Series B preference shares was $200.0 million and reflected in shareholders’ equity attributable to SiriusPoint shareholders in the consolidated balance sheets. During the year ended December 31, 2023 , the Company declared and paid dividends of $16.0 million to the Series B preference shareholders.
As of December 31, 2024 , the carrying value of the Series B preference shares was $200.0 million and reflected in shareholders’ equity attributable to SiriusPoint shareholders in the consolidated balance sheets. During the year ended December 31, 2024 , the Company declared and paid dividends of $16.0 million to the Series B preference shareholders.
Increased investment income is primarily due to increased interest rates and our rotation of the portfolio from cash and cash equivalents and U.S. government and government agency positions, to high-grade corporate debt and other securitized assets, in an effort to better diversify our portfolio.
Increased investment income is primarily due to the rotation of the portfolio from cash and cash equivalents and U.S. government and government agency positions to high-grade corporate debt and other securitized assets, in an effort to better diversify our portfolio.
You should read this discussion in conjunction with our consolidated financial statements and the related notes contained elsewhere in this Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (“Annual Report”).
You should read this discussion in conjunction with our consolidated financial statements and the related notes contained elsewhere in this Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (“Annual Report”).
For further details and discussion with respect to cash secured letter of credit agreements, see Note 15 “Debt and letter of credit facilities” in our audited consolidated financial statements included elsewhere in this Annual Report.
For further details and discussion with respect to cash secured letter of credit agreements, see Note 14 “Debt and letter of credit facilities” in our audited consolidated financial statements included elsewhere in this Annual Report.
See Note 12 “Loss and loss adjustment expense reserves” in our audited consolidated financial statements included elsewhere in this Annual Report for additional information regarding loss and loss adjustment expense reserves including reserving methodologies.
See Note 11 “Loss and loss adjustment expense reserves” in our audited consolidated financial statements included elsewhere in this Annual Report for additional information regarding loss and loss adjustment expense reserves including reserving methodologies.
We have licenses to write property, casualty and accident & health insurance and reinsurance globally, including admitted & non-admitted licensed companies in the United States, a Bermuda Class 4 company, a Lloyd’s of London (“Lloyd’s”) syndicate and managing agency, and an internationally licensed company domiciled in Sweden.
We are a global underwriter of insurance and reinsurance, domiciled in Bermuda. We have licenses to write property, casualty and accident & health insurance and reinsurance globally, including admitted & non-admitted licensed companies in the United States, a Bermuda Class 4 company, a Lloyd’s of London (“Lloyd’s”) syndicate and managing agency, and an internationally licensed company domiciled in Sweden.
See Note 7 “Fair value measurements” to our audited consolidated financial statements for additional information on the framework for measuring fair value established by U.S.
See Note 6 “Fair value measurements” to our audited consolidated financial statements for additional information on the framework for measuring fair value established by U.S.
See Note 15 “Debt and letter of credit facilities” in our audited consolidated financial statements included elsewhere in this Annual Report for additional information on the 2017 SEK Subordinated Notes, 2016 Senior Notes, and 2015 Senior Notes.
See Note 14 “Debt and letter of credit facilities” in our audited consolidated financial statements included elsewhere in this Annual Report for additional information on the 2024 Senior Notes, 2017 SEK Subordinated Notes, 2016 Senior Notes, and 2015 Senior Notes.
Products & Services Reinsurance Segment In our Reinsurance segment, we provide reinsurance products to insurance and reinsurance companies, government entities, and other risk bearing vehicles on a treaty or facultative basis. For reinsurance assumed, we participate in the reinsurance market with a global focus through the broker market distribution channel.
“Business” for additional information. 61 Products & Services Reinsurance Segment In our Reinsurance segment, we provide reinsurance products to insurance and reinsurance companies, government entities, and other risk bearing vehicles on a treaty or facultative basis. For reinsurance assumed, we participate in the reinsurance market with a global focus through the broker market distribution channel.
As of December 31, 2023 the carrying value of the 2017 SEK Subordinated Notes was $267.9 million and reflected as debt in the in the consolidated balance sheets (December 31, 2022 - $258.6 million ) . 2016 Senior Notes On November 1, 2016, we issued $400.0 million face value of senior unsecured notes ("2016 Senior Notes") at an issue price of 99.2% for net proceeds of $392.4 million after taking into effect both deferrable and non-deferrable issuance costs.
As of December 31, 2024 the carrying value of the 2017 SEK Subordinated Notes was $244.3 million and reflected as debt in the consolidated balance sheets (December 31, 2023 - $267.9 million ) . 2016 Senior Notes On November 1, 2016, we issued $400.0 million face value of senior unsecured notes ("2016 Senior Notes") at an issue price of 99.2% for net proceeds of $392.4 million after taking into effect both deferrable and non-deferrable issuance costs.
The BSCR model is a risk-based capital model which provides a method for determining a Class 3A and Class 4 insurer’s capital requirements (statutory economic capital and surplus) by taking into account the risk characteristics of different aspects of the Class 3A and Class 4 insurer’s business. The Company’s 2022 filed BSCR ratio was 217%.
The BSCR model is a risk-based capital model which provides a method for determining a Class 3A and Class 4 insurer’s capital requirements (statutory economic capital and surplus) by taking into account the risk characteristics of different aspects of the Class 3A and Class 4 insurer’s business. The Company’s 2023 filed BSCR ratio was 255%.
We are an underwriting company first as we aim to create a business model which is simplified, fully-integrated and globally connected. Distribution relationships are important to us, as we generate premiums from various sources, including our consolidated MGAs and non-consolidated MGAs.
We are an underwriting company first as we aim to create a business model which is simplified, fully-integrated and globally connected. Distribution relationships are important to us, as we generate premiums from various carefully selected partners, including our consolidated MGAs and non-consolidated MGAs.
These are fixed income investments which are included in debt securities in the table above. Refer to 70 Note 8 “Investments” in our audited consolidated financial statements included elsewhere in this Annual Report for further discussion of these securities.
These are fixed income investments which are included in debt securities in the table above. 67 Refer to Note 7 “Investments” in our audited consolidated financial statements included elsewhere in this Annual Report for further discussion of these securities.
Segment Results — Years ended December 31, 2023 and 2022 The determination of our reportable segments is based on the manner in which management monitors the performance of our operations. We classify our business into two reportable segments - Reinsurance and Insurance & Services. Collectively, the 73 sum of these two segments constitute “Core” results.
Segment Results — Years ended December 31, 2024 and 2023 The determination of our reportable segments is based on the manner in which management monitors the performance of our operations. We classify our business into two reportable segments - Reinsurance and Insurance & Services. Collectively, the sum of these two segments constitutes “Core” results.
As of December 31, 2023, we have equity stakes in 26 entities (MGAs, Insurtech and Other), which underwrite or distribute a wide range of lines of business, including general liability, professional liability, directors & officers, credit and bond, cyber, commercial automobile, workers compensation, accident & health, and other specialty insurance classes.
As of December 31, 2024, we have equity stakes in 20 entities (MGAs, Insurtech and Other), which underwrite or distribute a wide range of lines of business, including general liability, professional liability, directors & officers, credit and bond, cyber, commercial automobile, workers’ compensation, accident & health, and other specialty insurance classes.
As of December 31, 2023, total cash and cash equivalents and debt securities with a fair value of $1.4 billion were pledged as collateral against the letters of credit issued.
As of December 31, 2024, total cash and cash equivalents and debt securities with a fair value of $1.3 billion were pledged as collateral against the letters of credit issued.
Effective February 26, 2021, the Company entered into a 3-year, $300.0 million senior unsecured revolving credit facility (the “Facility”) with JPMorgan Chase Bank, N.A. as administrative agent, which was renewed in February 2024 for one additional year.
The Company entered into a 3-year, $300.0 million senior unsecured revolving credit facility (the “2021 Facility”) with JPMorgan Chase Bank, N.A . (“JPM”) as administrative agent, effective February 26, 2021, which was extended in February 2024 for one additional year.
If the recognition threshold is met, then the tax position is measured at the largest amount of benefit that is more than 50% likely of being realized upon ultimate settlement. As of December 31, 2023 , the total reserve for unrecognized tax benefits of $2.3 million.
If the recognition threshold is met, then the tax position is measured at the largest amount of benefit that is more than 50% likely of being realized upon ultimate settlement. As of December 31, 2024, the total reserve for unrecognized tax benefits of $0.9 million.
Our MGA strategy is to partner with high integrity and transparent leaders and teams with deep underwriting expertise and a track record of success. Our partnerships are structured to incentivize all parties to deliver thereby allowing capable teams to do what they do best, while we provide services where our partners are lacking.
Our MGA strategy is to partner with high integrity and transparent leaders and teams with deep underwriting expertise and a track record of success. Our partnerships are structured to incentivize all parties to deliver thereby allowing capable teams to do what they do best, while providing complementary services.
The duration of our fixed income portfolio, excluding cash and cash equivalents, is 2.8 years (December 31, 2022 - 1.8 years). The increase from the comparative period is due to our effort to lock-in yields on longer-duration investment products in the current interest rate environment.
The duration of our fixed income portfolio, excluding cash and cash equivalents, is 3.1 years (December 31, 2023 - 2.8). The increase from the prior year is due to our effort to lock-in yields on longer-duration investment products in the current interest rate environment.
The average credit rating of our investment portfolio is AA as of December 31, 2023 (December 31, 2022 - AA) with no defaults in the investment portfolio. The following table provides a breakdown of structured products between investment and non-investment grade securities as of December 31, 2023.
The average credit rating of our investment portfolio is “AA-” as of December 31, 2024 (December 31, 2023 - “AA”) with no defaults in the investment portfolio. The following table provides a breakdown of structured products between investment and non-investment grade securities as of December 31, 2024 and 2023.
(December 31, 2022 - $530.7 million). (2) Primarily consists of cash and fixed income securities such as U.S. Treasuries, money markets funds, and sovereign debt, securing our contractual obligations under certain insurance and reinsurance contracts that we will not be released from until the underlying risks have expired or have been settled.
(2) Primarily consists of cash and fixed income securities such as U.S. Treasuries, money markets funds, and sovereign debt, securing our contractual obligations under certain (re)insurance contracts that will not be released from until the underlying risks have expired or have been settled.
Specifically, our underwriting results benefited from portfolio refinement, improving our mix of business and reducing historical volatility from our property reinsurance business. Additionally, we de-risked our investment portfolio resulting in materially improved and reduced volatility investment returns.
Our underwriting results benefited from portfolio refinement, improving our mix of business, and reducing historical volatility from our property reinsurance business, resulting in our ninth straight quarter of underwriting profit. We de-risked our investment portfolio resulting in materially improved and reduced volatility investment returns.
The foreign exchange losses of $34.9 million for the year ended December 31, 2023 were primarily due to $34.4 million of foreign exchange losses from our international operations. These amounts were primarily unrealized and resulted from the effects of revaluing net insurance liabilities settled in foreign currencies.
The foreign exchange losses of $34.9 million for the year ended December 31, 2023 were primarily due to $34.4 million of foreign exchange losses from our international operations. These amounts were primarily unrealized and resulted from the effects of revaluing net insurance liabilities settled in foreign currencies. Additional foreign currency gains (losses) were recorded as part of the investments results.
See Note 5 “Segment reporting” to our audited consolidated financial statements for additional information and a calculation of Core income (loss). 79 Tangible Book Value Per Diluted Common Share Tangible book value per diluted common share, as presented, is a non-GAAP financial measure and the most comparable U.S. GAAP measure is book value per common share.
See Note 4 “Segment reporting” to our audited consolidated financial statements for additional information and a calculation of Core results. 76 Tangible Book Value Per Diluted Common Share Tangible book value per diluted common share, as presented, is a non-GAAP financial measure and the most directly comparable U.S. GAAP measure is book value per common share.
As of December 31, 2023, the Company’s strategic investments totaled $203.9 million. See Note 7 “Fair value measurements” to our audited consolidated financial statements for additional information on the framework for measuring fair value established by U.S. GAAP disclosure requirements related to investments.
As of December 31, 2024, the Company’s strategic investments totaled $105.0 million. See Note 6 “Fair value measurements” to our audited consolidated financial statements for additional information on the framework for measuring fair value established by U.S. GAAP disclosure requirements related to investments.
Operating, investing and financing cash flows for the years ended December 31, 2023 and 2022 were as follows: 2023 2022 ($ in millions) Net cash provided by operating activities $ 581.3 $ 293.3 Net cash used in investing activities (332.2) (1,304.3) Net cash used in financing activities (61.5) (23.7) Net increase (decrease) in cash, cash equivalents and restricted cash 187.6 (1,034.7) Cash, cash equivalents and restricted cash at beginning of year 913.7 1,948.4 Cash, cash equivalents and restricted cash at end of year $ 1,101.3 $ 913.7 Operating Activities Cash flows provided by operating activities can fluctuate due to timing differences between the collection of premiums and reinsurance recoverables and the payment of losses and loss expenses, and the payment of premiums to reinsurers.
Operating, investing and financing cash flows for the years ended December 31, 2024 and 2023 were as follows: 2024 2023 ($ in millions) Net cash provided by operating activities $ 74.7 $ 581.3 Net cash provided by (used in) investing activities 343.6 (332.2) Net cash used in financing activities (625.0) (61.5) Net increase (decrease) in cash, cash equivalents and restricted cash (206.7) 187.6 Cash, cash equivalents and restricted cash at beginning of year 1,101.3 913.7 Cash, cash equivalents and restricted cash at end of year $ 894.6 $ 1,101.3 Operating Activities Cash flows provided by operating activities can fluctuate due to timing differences between the collection of premiums and reinsurance recoverables and the payment of losses and loss expenses, and the payment of premiums to reinsurers.
The following table details our prior year loss reserve development of liability for net unpaid claims and claim expenses for the years ended December 31, 2023 and 2022: 2023 2022 Unfavorable (favorable) development Unfavorable (favorable) development ($ in millions) Reinsurance $ (140.8) $ (8.8) Insurance & Services (26.6) (4.7) Corporate (6.8) (7.8) Total net unfavorable (favorable) development $ (174.2) $ (21.3) 87 Loss and loss adjustment expense development - 2023 The $174.2 million net decrease in prior years’ reserves for the year ended December 31, 2023 was driven by: • $140.8 million of net favorable prior year reserve development in the Reinsurance segment due to management reflecting the continued favorable reported loss emergence through December 31, 2023 in its best estimate of reserves, which was further validated by the pricing of the 2023 LPT from external reinsurers, in addition to a reduction in unallocated loss adjustment expense reserves related to the claims that will no longer be managed by SiriusPoint under the terms of the 2023 LPT; • $26.6 million of net favorable prior year reserve development in the Insurance & Services segment which was primarily driven by favorable loss reserve emergence in A&H and lower adverse prior year loss development in workers compensation; and • $6.8 million of net favorable prior year reserve development in Corporate due to various actions taken for the year ended December 31, 2023 including favorable reported emergence in prior accident year loss reserves as validated by the pricing from external reinsurers of the 2023 LPT, and a reduction in unallocated loss adjustment expense reserves related to the claims that will no longer be managed by SiriusPoint under the terms of the 2023 LPT.
Loss and loss adjustment expense development - 2023 The $174.2 million net decrease in prior years’ reserves for the year ended December 31, 2023 was driven by: • $140.8 million of net favorable prior year reserve development in the Reinsurance segment due to management reflecting the continued favorable reported loss emergence through December 31, 2023 in its best estimate of reserves, which was further validated by the pricing of the 2023 LPT from external reinsurers, in addition to a reduction in unallocated loss adjustment expense reserves related to the claims that will no longer be managed by SiriusPoint under the terms of the 2023 LPT; • $26.6 million of net favorable prior year reserve development in the Insurance & Services segment which was primarily driven by favorable loss reserve emergence in A&H and lower adverse prior year loss development in workers’ compensation; and • $6.8 million of net favorable prior year reserve development in Corporate due to various actions taken for the year ended December 31, 2023 including favorable reported emergence in prior accident year loss reserves as validated by the pricing from external reinsurers of the 2023 LPT, and a reduction in unallocated loss adjustment expense reserves related to the claims that will no longer be managed by SiriusPoint under the terms of the 2023 LPT.
Reinsurance Reinsurance markets are benefiting from the positive primary insurance environment across most insurance lines. While primary insurance companies, especially those in the U.S. homeowners market, have been materially affected by another year of elevated levels of catastrophe losses, the property reinsurance market has performed well, resulting in materially improved returns on capital in reinsurance.
While primary insurance companies, especially those in the U.S. homeowners market, have been materially affected by another year of elevated levels of catastrophe losses, the property reinsurance market has performed well, resulting in materially improved returns on capital in reinsurance.
See Note 22 “Statutory requirements” in our audited consolidated financial statements included elsewhere in this Annual Report for additional information. For the year ended December 31, 2023, SiriusPoint received $101.2 million (2022 - $125.0 million) of distributions from SiriusPoint Bermuda Insurance Company Ltd. (“SiriusPoint Bermuda”), its immediate wholly-owned subsidiary.
See Note 22 “Statutory requirements” in our audited consolidated financial statements included elsewhere in this Annual Report for additional information. For the year ended December 31, 2024, SiriusPoint Bermuda Insurance Company Ltd. (“SiriusPoint Bermuda”), the immediate wholly-owned subsidiary of SiriusPoint, declared dividends of $804.0 million (2023 - $101.2 million) to SiriusPoint.
The jurisdictions in which our subsidiaries and branches are subject to tax are Belgium, Bermuda, Canada, Germany, Gibraltar, Hong Kong (China), Ireland, Luxembourg, Singapore, Sweden, Switzerland, the United Kingdom, and the United States.
The jurisdictions in which our subsidiaries and branches are subject to tax are Belgium, Bermuda, Canada, Germany, Luxembourg, Sweden, Switzerland, the United Kingdom, and the United States.
As of December 31, 2023, we had equity stakes in 26 entities (MGAs, Insurtech and Other) which underwrite or distribute a wide range of lines of business. Refer to Part I. Item 1. “Business” for additional information.
As of December 31, 2024, we had equity stakes in 20 entities (MGAs, Insurtech and Other) which underwrite or distribute a wide range of lines of business. Refer to Part I. Item 1.
Series B Preference Shares The Series B preference shares are listed on the New York Stock Exchange under the symbol “SPNT PB”. The Company has 8,000,000 of Series B preference shares outstanding, par value $0.10. Dividends on the Series B preference shares are cumulative and payable quarterly in arrears at an initial rate of 8.0% per annum.
The Company has 8,000,000 of Series B preference shares outstanding, par value $0.10. Dividends on the Series B preference shares are cumulative and payable quarterly in arrears at an initial rate of 8.0% per annum.
These forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to our Introductory Note to this Annual Report and the risks and uncertainties described in Part I, Item 1A “Risk Factors.” Our actual results may differ materially from those contained in or implied by any forward-looking statements. 64 Our fiscal year ends December 31 and, unless otherwise noted, references to years are for fiscal years ended December 31.
These forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to our Introductory Note to this Annual Report and the risks and uncertainties described in Part I, Item 1A “Risk Factors.” Our actual results may differ materially from those contained in or implied by any forward-looking statements.
Core net services income - consists of services revenues which include commissions, brokerage and fee income related to consolidated MGAs, and other revenues, and services expenses which include direct expenses related to consolidated MGAs, services noncontrolling income which represent minority ownership interests in consolidated MGAs.
Core net services income - consists of services revenues which include commissions, brokerage and fee income related to consolidated MGAs, and other revenues, and services expenses which include direct expenses related to consolidated MGAs, services noncontrolling income which represent minority ownership interests in consolidated MGAs. Net services income is a key indicator of the profitability of the Company's services provided.
These commitments do not have fixed funding dates. Therefore, these commitments are excluded from the table above. (7) The Series B preference shares contain both a mandatory conversion and optional redemption features, with the optional redemption features allowing for settlement in either common shares or cash. Obligations arising from these incentives are excluded from the table above.
(8) The Series B preference shares contain both a mandatory conversion and optional redemption features, with the optional redemption features allowing for settlement in either common shares or cash. Obligations arising from these incentives are excluded from the table above.
Investing Activities Cash flows used in investing activities for the year ended December 31, 2023 primarily relates to the increase in purchases of debt securities during the period resulting from increased cash flows provided by operating activities.
Cash flows used in investing activities for the year ended December 31, 2023 primarily relates to the purchases of debt securities during the period.
Business Outlook Our business model is diversified and differentiated compared to a traditional P&C insurer given we have three uncorrelated sources of earnings; (i) underwriting results where we bear insurance risk; (ii) services fee income from MGAs we consolidate; and (iii) investment results.
Our business model is diversified and differentiated compared to a traditional P&C insurer given we have three uncorrelated sources of earnings; (i) underwriting results where we bear insurance risk; (ii) services fee income from MGAs we consolidate; and (iii) investment results. We took decisive actions on our strategic priorities during 2024 to reduce volatility and increase profitability.
The following table summarizes premium estimates and related commissions and expenses by segment as of December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Premium Estimates Commission Estimate Amount Included in Insurance and Reinsurance Balances Receivable, Net Premium Estimates Commission Estimate Amount Included in Insurance and Reinsurance Balances Receivable, Net ($ in millions) Reinsurance $ 923.4 $ (215.1) $ 708.3 $ 948.6 $ (164.9) $ 783.7 Insurance & Services 619.2 (104.4) 514.8 426.1 (142.9) 283.2 Corporate 9.8 (4.7) 5.1 5.6 0.9 6.5 Total $ 1,552.4 $ (324.2) $ 1,228.2 $ 1,380.3 $ (306.9) $ 1,073.4 Risk Transfer Determining whether or not a reinsurance contract meets the condition for risk transfer requires judgment.
The following table summarizes premium estimates and related commissions and expenses by segment as of December 31, 2024 and 2023: December 31, 2024 December 31, 2023 Premium Estimates Commission Estimate Amount Included in Insurance and Reinsurance Balances Receivable, Net Premium Estimates Commission Estimate Amount Included in Insurance and Reinsurance Balances Receivable, Net ($ in millions) Reinsurance $ 861.0 $ (190.3) $ 670.7 $ 923.4 $ (215.1) $ 708.3 Insurance & Services 672.5 (169.0) 503.5 619.2 (104.4) 514.8 Corporate 153.8 (104.6) 49.2 9.8 (4.7) 5.1 Total $ 1,687.3 $ (463.9) $ 1,223.4 $ 1,552.4 $ (324.2) $ 1,228.2 Risk Transfer Determining whether or not a reinsurance contract meets the condition for risk transfer requires judgment.
Financial Condition As of December 31, 2023, total shareholders’ equity was $2,530.6 million compared to $2,082.6 million as of December 31, 2022.
Financial Condition As of December 31, 2024, total shareholders’ equity was $1,938.8 million compared to $2,530.6 million as of December 31, 2023.
On an aggregate basis including foreign currency gains (losses) from investments, the effects of foreign exchange resulted in a decrease to net income of $23.8 million and comprehensive income of $13.5 million for the year ended December 31, 2023.
On an aggregate basis including foreign currency gains (losses) from investments, the effects of foreign exchange resulted in an increase to net income of $14.6 million and comprehensive income of $13.0 million for the year ended December 31, 2024.
As of December 31, 2023 the carrying value of the 2016 Senior Notes was $403.5 million and reflected as debt in the consolidated balance sheets (December 31, 2022 - $404.8 million ) . 2015 Senior Notes On February 13, 2015, we issued $115.0 million of senior unsecured notes (the “2015 Senior Notes”) due February 13, 2025.
As a result, the 2016 Senior Notes had no carrying value in the consolidated balance sheets as of December 31, 2024 (December 31, 2023 - $403.5 million). 2015 Senior Notes On February 13, 2015, we issued $115.0 million of senior unsecured notes (the “2015 Senior Notes”) due February 13, 2025.
If we determine that a reinsurance contract does not transfer sufficient risk, we use deposit accounting. 86 Loss and Loss Adjustment Expense Reserves Loss and Loss Adjustment Expense Reserves by Reportable Segment The following table summarize loss and loss adjustment expenses reserves net of reinsurance recoveries separated between (i) case reserves for claims reported ("Case") and (ii) incurred but not reported ("IBNR") reserves for losses that have occurred but for which claims have not yet been reported and for expected future development on case reserves as of December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Case IBNR Total (1) Case IBNR Total (1) ($ in millions) Reinsurance $ 440.4 $ 1,385.7 $ 1,826.1 $ 1,117.4 $ 1,776.4 $ 2,893.8 Insurance & Services 212.9 852.3 1,065.2 145.1 593.2 738.3 Corporate 156.0 265.7 421.7 57.8 202.6 260.4 Total $ 809.3 $ 2,503.7 $ 3,313.0 $ 1,320.3 $ 2,572.2 $ 3,892.5 (1) Excludes deferred charges on retroactive reinsurance contracts.
If we determine that a reinsurance contract does not transfer sufficient risk, we record under the deposit accounting method. 83 Loss and Loss Adjustment Expense Reserves Loss and Loss Adjustment Expense Reserves by Reportable Segment The following table summarize loss and loss adjustment expenses reserves net of reinsurance recoveries separated between (i) case reserves for claims reported ("Case") and (ii) incurred but not reported ("IBNR") reserves for losses that have occurred but for which claims have not yet been reported and for expected future development on case reserves as of December 31, 2024 and 2023: December 31, 2024 December 31, 2023 Case IBNR Total (1) Case IBNR Total (1) ($ in millions) Reinsurance $ 425.0 $ 1,246.9 $ 1,671.9 $ 440.4 $ 1,385.7 $ 1,826.1 Insurance & Services 109.2 883.3 992.5 212.9 852.3 1,065.2 Corporate 264.1 410.1 674.2 156.0 265.7 421.7 Total $ 798.3 $ 2,540.3 $ 3,338.6 $ 809.3 $ 2,503.7 $ 3,313.0 (1) Excludes deferred gains on retroactive reinsurance contracts.
For discussion of our results of operations and changes in financial condition for the year ended December 31, 2022 compared to the year ended December 31, 2021 refer to Part II, Item 7.
Our fiscal year ends December 31 and, unless otherwise noted, references to years are for fiscal years ended December 31. For discussion of our results of operations and changes in financial condition for the year ended December 31, 2023 compared to the year ended December 31, 2022 refer to Part II, Item 7.
We sometimes encounter situations where it is determined that a claim presentation from a ceding company is not in accordance with contract terms. Most situations are resolved without the need for litigation or arbitration. However, in the infrequent situations where a resolution is not possible, SiriusPoint defends its position in such arbitration or litigation.
When we encounter situations where a claim presentation from a ceding company is not in accordance with contract terms our focus is to resolve the issue without the need for litigation or arbitration. However, in the infrequent situations where a resolution is not possible, SiriusPoint defends its position in arbitration or litigation.
Core Underwriting Results We generated underwriting income of $250.2 million and a combined ratio of 89.1% for the year ended December 31, 2023 , compared to an underwriting loss of $34.8 million and a combined ratio of 101.6% for the year ended December 31, 2022.
Core Underwriting Results We generated underwriting income of $200.0 million and a combined ratio of 91.0% for the year ended December 31, 2024 , compared to underwriting income of $250.2 million and a combined ratio of 89.1% for the year ended December 31, 2023.
We believe that the accounting policies that require the most significant judgments and estimations by management are: (1) premium revenue recognition, (2) loss and loss adjustment expense reserves, (3) fair value measurements related to our investments, (4) valuation of loss and adjustment expenses reserves and intangible assets relating to the Value of Business Acquired (“VOBA”) and other intangible assets as part of the Sirius Group acquisition , and (5) income taxes.
We believe that the accounting policies that require the most significant judgments and estimations by management are: (1) premium revenue recognition, (2) loss and loss adjustment expense reserves, (3) fair value measurements related to our investments and (4) income taxes.
The following tables set forth the operating segment results, and the year over year changes, for the years ended December 31, 2023 and 2022: 2023 Reinsurance Insurance & Services Core Eliminations (2) Corporate Segment Measure Reclass Total ($ in millions) Gross premiums written $ 1,271.0 $ 2,039.7 $ 3,310.7 $ — $ 116.7 $ — $ 3,427.4 Net premiums written 1,061.0 1,282.7 2,343.7 — 94.2 — 2,437.9 Net premiums earned 1,031.4 1,249.2 2,280.6 — 145.6 — 2,426.2 Loss and loss adjustment expenses incurred, net 490.3 815.4 1,305.7 (5.4) 81.0 — 1,381.3 Acquisition costs, net 252.2 295.5 547.7 (137.2) 62.2 — 472.7 Other underwriting expenses 82.7 94.3 177.0 — 19.3 — 196.3 Underwriting income (loss) 206.2 44.0 250.2 142.6 (16.9) — 375.9 Services revenues (1.1) 238.6 237.5 (149.6) — (87.9) — Services expenses — 187.8 187.8 — — (187.8) — Net services fee income (loss) (1.1) 50.8 49.7 (149.6) — 99.9 — Services noncontrolling income — (8.5) (8.5) — — 8.5 — Net services income (loss) (1.1) 42.3 41.2 (149.6) — 108.4 — Segment income (loss) $ 205.1 $ 86.3 $ 291.4 $ (7.0) $ (16.9) $ 108.4 $ 375.9 Underwriting Ratios: (1) Loss ratio 47.5 % 65.3 % 57.3 % 56.9 % Acquisition cost ratio 24.5 % 23.7 % 24.0 % 19.5 % Other underwriting expenses ratio 8.0 % 7.5 % 7.8 % 8.1 % Combined ratio 80.0 % 96.5 % 89.1 % 84.5 % (1) Underwriting ratios are calculated by dividing the related expense by net premiums earned.
While ultimate revenues and expenses recognized will match, there will be recognition timing differences based on the different accounting standards. 71 2023 Reinsurance Insurance & Services Core Eliminations (2) Corporate Segment Measure Reclass Total ($ in millions) Gross premiums written $ 1,271.0 $ 2,039.7 $ 3,310.7 $ — $ 116.7 $ — $ 3,427.4 Net premiums written 1,061.0 1,282.7 2,343.7 — 94.2 — 2,437.9 Net premiums earned 1,031.4 1,249.2 2,280.6 — 145.6 — 2,426.2 Loss and loss adjustment expenses incurred, net 490.3 815.4 1,305.7 (5.4) 81.0 — 1,381.3 Acquisition costs, net 252.2 295.5 547.7 (137.2) 62.2 — 472.7 Other underwriting expenses 82.7 94.3 177.0 — 19.3 — 196.3 Underwriting income (loss) 206.2 44.0 250.2 142.6 (16.9) — 375.9 Services revenues (1.1) 238.6 237.5 (149.6) — (87.9) — Services expenses — 187.8 187.8 — — (187.8) — Net services fee income (loss) (1.1) 50.8 49.7 (149.6) — 99.9 — Services noncontrolling income — (8.5) (8.5) — — 8.5 — Net services income (loss) (1.1) 42.3 41.2 (149.6) — 108.4 — Segment income (loss) $ 205.1 $ 86.3 $ 291.4 $ (7.0) $ (16.9) $ 108.4 $ 375.9 Attritional losses $ 618.9 $ 840.7 $ 1,459.6 $ (5.4) $ 76.5 $ — $ 1,530.7 Catastrophe losses 12.2 1.3 13.5 — 11.3 — 24.8 Prior year loss reserve development (140.8) (26.6) (167.4) — (6.8) — (174.2) Loss and loss adjustment expenses incurred, net $ 490.3 $ 815.4 $ 1,305.7 $ (5.4) $ 81.0 $ — $ 1,381.3 Underwriting Ratios: (1) Attritional loss ratio 60.0 % 67.3 % 64.0 % 63.1 % Catastrophe loss ratio 1.2 % 0.1 % 0.6 % 1.0 % Prior year loss development ratio (13.7) % (2.1) % (7.3) % (7.2) % Loss ratio 47.5 % 65.3 % 57.3 % 56.9 % Acquisition cost ratio 24.5 % 23.7 % 24.0 % 19.5 % Other underwriting expenses ratio 8.0 % 7.5 % 7.8 % 8.1 % Combined ratio 80.0 % 96.5 % 89.1 % 84.5 % (1) Underwriting ratios are calculated by dividing the related expense by net premiums earned.
Core Premium Volume Gross premiums written decreased by $94.9 million, or 2.8%, for the year ended December 31, 2023 compared to the year ended December 31, 2022. Net premiums written decreased by $201.9 million, or 7.9%, for the year ended December 31, 2023 compared to the year ended December 31, 2022.
Core Premium Volume Gross premiums written decreased by $134.3 million, or 4.1%, for the year ended December 31, 2024 compared to the year ended December 31, 2023. Net premiums written decreased by $2.8 million, or 0.1%, for the year ended December 31, 2024 compared to the year ended December 31, 2023.
Service margin, which is calculated as net services fee income as a percentage of services revenues, increased to 20.9% for the year ended December 31, 2023 from 16.8% for the year ended December 31, 2022.
Service margin, which is calculated as net services fee income as a percentage of services revenues, remained stable at 21.0% for the year ended December 31, 2024 compared to 20.9% for the year ended December 31, 2023.
The following table sets forth the computation of book value per common share, book value per diluted common share and tangible book value per diluted common share as of December 31, 2023 and 2022: December 31, 2023 December 31, 2022 ($ in millions, except share and per share amounts) Common shareholders’ equity attributable to SiriusPoint common shareholders $ 2,313.9 $ 1,874.7 Intangible assets (152.7) (163.8) Tangible common shareholders' equity attributable to SiriusPoint common shareholders $ 2,161.2 $ 1,710.9 Common shares outstanding 168,120,022 162,177,653 Effect of dilutive stock options, restricted share units, warrants and Series A preference shares 5,193,920 3,492,795 Book value per diluted common share denominator 173,313,942 165,670,448 Unvested restricted shares — (1,708,608) Tangible book value per diluted common share denominator 173,313,942 163,961,840 Book value per common share $ 13.76 $ 11.56 Book value per diluted common share $ 13.35 $ 11.32 Tangible book value per diluted common share $ 12.47 $ 10.43 Liquidity and Capital Resources Liquidity Requirements Liquidity is a measure of a company’s ability to generate cash flows sufficient to meet short-term and long-term cash requirements of its business operations.
The following table sets forth the computation of book value per common share, book value per diluted common share and tangible book value per diluted common share as of December 31, 2024 and 2023: December 31, 2024 December 31, 2023 ($ in millions, except share and per share amounts) Common shareholders’ equity attributable to SiriusPoint common shareholders $ 1,737.4 $ 2,313.9 Intangible assets 140.8 152.7 Tangible common shareholders' equity attributable to SiriusPoint common shareholders $ 1,596.6 $ 2,161.2 Common shares outstanding 116,429,057 168,120,022 Effect of dilutive stock options, restricted share units and warrants 2,559,359 5,193,920 Book value per diluted common share denominator 118,988,416 173,313,942 Book value per common share $ 14.92 $ 13.76 Book value per diluted common share $ 14.60 $ 13.35 Tangible book value per diluted common share $ 13.42 $ 12.47 Liquidity and Capital Resources Liquidity Requirements Liquidity is a measure of a company’s ability to generate cash flows sufficient to meet short-term and long-term cash requirements of its business operations.
For the year ended December 31, 2023, catastrophe losses, net of reinsurance and reinstatement premiums, were $12.2 million or 1.2 percentage points on the combined ratio, which includes losses of $5.7 million from the Turkey Earthquake, $3.8 million from the Hawaii wildfires and $3.3 million from Hurricane Idalia, compared to $136.3 million, including $79.2 million for Hurricane Ian, $57.1 million for other catastrophe events, including South Africa floods and France hail storms, for the year ended December 31, 2022.
For the year ended December 31, 2024, catastrophe losses, net of reinsurance and reinstatement premiums, were $49.5 million, or 4.7 percentage points on the combined ratio, which includes losses from Hurricanes Milton and Helene compared to $12.2 million, or 1.2 percentage points on the combined ratio, including losses from the Turkey Earthquake, Hawaii wildfires and Hurricane Idalia for the year ended December 31, 2023.
Our debt and equity instruments as of December 31, 2023 and 2022 are summarized below. 2017 SEK Subordinated Notes On September 22, 2017, we issued floating rate callable subordinated notes denominated in SEK in the amount of SEK 2,750.0 million (or $346.1 million on date of issuance) at a 100% issue price ("2017 SEK Subordinated Notes").
As of December 31, 2024 the carrying value of the 2024 Senior Notes was $394.8 million and reflected as debt in the consolidated balance sheets. 2017 SEK Subordinated Notes On September 22, 2017, we issued floating rate callable subordinated notes denominated in SEK in the amount of SEK 2,750.0 million (or $346.1 million on date of issuance) at a 100% issue price ("2017 SEK Subordinated Notes").
Income Tax Benefit Income tax benefit of $45.0 million for the year ended December 31, 2023 is due to a one-time tax benefit attributable to the enactment of the Bermuda CIT, offset by tax expense on increased underwriting profits and investment income, compared to $36.7 million for the year ended December 31, 2022 due to losses in taxable jurisdictions.
Income Tax Expense Income tax expense is $30.7 million for the year ended December 31, 2024, primarily driven by income in taxable jurisdictions, compared to income tax benefit of $45.0 million for the year ended December 31, 2023, driven by a one-time tax benefit attributable to the enactment of the Bermuda CIT during the year ended December 31, 2023.
For the year ended December 31, 2023 catastrophe losses, net of reinsurance and reinstatement premiums, were $13.5 million, or 0.6 percentage points on the combined ratio, which includes losses of $6.8 million from the Turkey Earthquake, $3.8 million from the Hawaii wildfires and $3.3 million from Hurricane Idalia compared to $137.9 million, or 6.0 percentage points on the combined ratio, including $80.8 million for Hurricane Ian and $57.1 million for other 75 catastrophe events, including the South Africa floods and France hail storms.
For the year ended December 31, 2024 catastrophe losses, net of reinsurance and reinstatement premiums, were $54.8 million, or 2.5 percentage points on the combined ratio, which includes losses from Hurricanes Milton and Helene compared to $13.5 million, or 0.6 percentage points on the combined ratio, including losses from the Turkey Earthquake, Hawaii wildfires and Hurricane Idalia, for the year ended December 31, 2023.
Consolidated Results of Operations — Years ended December 31, 2023 and 2022 The following table sets forth the key items discussed in the consolidated results of operations section, which includes the results from the Company’s reportable segments and Corporate, and the year over year changes, for the years ended December 31, 2023 and 2022: 2023 2022 Change ($ in millions) Total underwriting income $ 375.9 $ 83.3 $ 292.6 Net investment income and realized and unrealized investment gains (losses) 272.7 (322.7) 595.4 Other revenues 38.4 110.2 (71.8) Net corporate and other expenses (258.2) (312.8) 54.6 Intangible asset amortization (11.1) (8.1) (3.0) Interest expense (64.1) (38.6) (25.5) Foreign exchange gains (losses) (34.9) 66.0 (100.9) Income tax benefit 45.0 36.7 8.3 Net income (loss) $ 363.7 $ (386.0) $ 749.7 The key changes in our consolidated results for the year ended December 31, 2023 compared to the prior year are discussed below.
Consolidated Results of Operations — Years ended December 31, 2024 and 2023 The following table sets forth the key items discussed in the consolidated results of operations section, which includes the results from the Company’s reportable segments and Corporate, and the year over year changes, for the years ended December 31, 2024 and 2023: 2024 2023 Change ($ in millions) Total underwriting income $ 276.4 $ 375.9 $ (99.5) Net investment income and net realized and unrealized investment gains 224.6 272.7 (48.1) Other revenues 184.2 97.8 86.4 Loss on settlement and change in fair value of liability-classified capital instruments (148.5) (59.4) (89.1) Net corporate and other expenses (232.1) (258.2) 26.1 Intangible asset amortization (11.9) (11.1) (0.8) Interest expense (69.6) (64.1) (5.5) Foreign exchange gains (losses) 10.0 (34.9) 44.9 Income tax (expense) benefit (30.7) 45.0 (75.7) Net income $ 202.4 $ 363.7 $ (161.3) The key changes in our consolidated results for the year ended December 31, 2024 compared to the prior year are discussed below.
Investment Results The following is a summary of the results from investments and cash for the years ended December 31, 2023 and 2022: 2023 2022 ($ in millions) Gross investment income $ 299.8 $ 133.6 Change in fair value of trading portfolio (1) 30.7 (149.4) Net realized investment losses (40.7) (76.1) Net realized and unrealized investment losses from related party investment funds (1.0) (210.5) Investment results 288.8 (302.4) Investment expenses (16.1) (20.3) Total net investment income and realized and unrealized investment gains (losses) $ 272.7 $ (322.7) (1) Trading portfolio is inclusive of all non-AFS designated investments in the investment portfolio. 71 The following is a summary of the results from investments by investment classification for the years ended December 31, 2023 and 2022: 2023 2022 ($ in millions) Debt securities, available for sale $ 181.6 $ 35.1 Debt securities, trading 66.1 (115.6) Short-term investments 29.3 17.7 Other long-term investments (20.0) (10.6) Derivative instruments 4.8 — Equity securities (0.1) (0.4) Net realized and unrealized investment losses from related party investment funds (1.0) (210.5) Net investment income and realized and unrealized investment gains before other investment expenses and investment income (loss) on cash and cash equivalents 260.7 (284.3) Investment expenses (16.1) (20.3) Net investment income (loss) on cash and cash equivalents 28.1 (18.1) Total net investment income and realized and unrealized investment gains (losses) $ 272.7 $ (322.7) Total net investment income and realized and unrealized investment gains (losses) for the year ended December 31, 2023 was primarily attributable to net investment income related to interest income from our debt and short-term investment portfolio of $277.0 million.
The following is a summary of the results from investments by investment classification for the years ended December 31, 2024 and 2023: 2024 2023 ($ in millions) Debt securities, available for sale $ 270.5 $ 181.6 Debt securities, trading 9.2 66.1 Short-term investments 10.0 29.3 Other long-term investments (72.2) (20.1) Derivative instruments (2.0) 4.8 Net realized and unrealized investment gains (losses) from related party investment funds 9.7 (1.0) Net investment income and realized and unrealized investment gains (losses) before other investment expenses and investment income on cash and cash equivalents 225.2 260.7 Investment expenses (29.9) (16.1) Net investment income on cash and cash equivalents 29.3 28.1 Total net investment income and realized and unrealized investment gains (losses) $ 224.6 $ 272.7 68 Total net investment income and realized and unrealized investment gains (losses) for the year ended December 31, 2024 was primarily attributable to net investment income related to interest income from our debt and short-term investment portfolio of $289.7 million, partially offset by unrealized losses on other long-term investments of $70.0 million.
We believe the dividend/distribution capacity of SiriusPoint’s subsidiaries, which was approximately $810.0 million as of December 31, 2023, will provide SiriusPoint with sufficient liquidity for the foreseeable future. For the year ended December 31, 2023 , SiriusPoint did not pay any dividends to its common shareholders.
We believe the dividend/distribution capacity of SiriusPoint’s subsidiaries, which was approximately $712.7 million as of December 31, 2024, will provide SiriusPoint with sufficient liquidity for the foreseeable future. During the year ended December 31, 2024, SiriusPoint declared and paid dividends of $16.0 million to the Series B preference shareholders (2023 - $16.0 million).
Corporate includes the results of all runoff business, which represents certain classes of business that we no longer actively underwrite, including the effect of the Restructuring Plan and certain reinsurance contracts that have interest crediting features. Corporate results include asbestos and environmental and other latent liability exposures on a gross basis, which have mostly been ceded.
Corporate Corporate includes the results of all runoff business, which represents certain classes of business that we no longer actively underwrite, including the effects of the Restructuring Plan and certain reinsurance contracts that have interest crediting features.
Core Services Results Services revenue was $237.5 million for the year ended December 31, 2023 compared to $215.5 million for the year ended December 31, 2022. The increase was primarily due to higher services revenue in IMG from increased demand for travel insurance products and services, as well as continued growth in Arcadian.
Core Services Results Services revenue was $222.9 million for the year ended December 31, 2024 compared to $237.5 million for the year ended December 31, 2023. The decrease was primarily due to the deconsolidation of Arcadian, partially offset by increased services revenue from IMG due to continued demand for travel insurance products and services.
See “Non-GAAP Financial Measures” for an explanation and reconciliation. 68 As of December 31, 2023 , book value per common share was $13.76, representing an increase of $2.20 per share, or 19.0%, from $11.56 as of December 31, 2022.
See “Non-GAAP Financial Measures” for an explanation and reconciliation. 65 As of December 31, 2024 , book value per common share was $14.92, representing an increase of $1.16 per share, or 8.4%, from $13.76 as of December 31, 2023.
As of December 31, 2023 , book value per diluted common share was $13.35, representing an increase of $2.03 per share, or 17.9%, from $11.32 as of December 31, 2022.
As of December 31, 2024 , book value per diluted common share was $14.60, representing an increase of $1.25 per share, or 9.4%, from $13.35 as of December 31, 2023.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeThe following table summarizes the estimated effects of a hypothetical 10% increase and decrease in the value of the U.S. dollar against select foreign currencies would have had on the carrying value of our net assets as of December 31, 2023: 10% increase 10% decrease ($ in millions) Australian Dollar to U.S. dollar $ (3.3) $ 3.3 Swedish Krona to U.S. dollar 2.1 (2.1) Euro to U.S. dollar (1.0) 1.0 British Pound to U.S. dollar (0.6) 0.6 Canadian Dollar to U.S. dollar $ (0.4) $ 0.4 Other Long-term Investments Price Risk The carrying values of our other long-term investments are at either fair value, using the equity method, net asset value, or management's cost less any impairment, which is based on fair value, as of the balance sheet date.
Biggest changeThe following table summarizes the estimated effects of a hypothetical 10% increase and decrease in the value of the U.S. dollar against select foreign currencies would have had on the carrying value of our net assets as of December 31, 2024: 10% increase 10% decrease ($ in millions) Swedish Krona to U.S. dollar $ (1.6) $ 1.6 Euro to U.S. dollar 7.8 (7.8) British Pound to U.S. dollar (1.1) 1.1 Canadian Dollar to U.S. dollar (2.8) 2.8 Australian Dollar to U.S. dollar $ (0.2) $ 0.2 Item 8.
This can occur because (i) the analysis floors interest rates at a de minimis level in falling 92 rate scenarios, muting price increases, (ii) portions of the fixed income investment portfolio may be callable, muting price increases in falling interest rate scenarios and/or (iii) portions of the fixed income investment portfolio may experience cash flow extension in higher interest rate environments, which generally results in lower fixed income asset prices.
This can occur because (i) the analysis floors interest rates at a de minimis level in falling rate scenarios, muting price increases, (ii) portions of the fixed income investment portfolio may be callable, muting price increases in falling interest rate scenarios and/or (iii) portions of the fixed income investment portfolio may experience cash flow extension in higher interest rate environments, which generally results in lower fixed income asset prices.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk Our consolidated balance sheets include a substantial amount of assets and liabilities whose fair values are subject to market risk. The term market risk refers to the risk of loss arising from adverse changes in interest rates, credit spreads, equity markets prices, and other relevant market rates and prices.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk Our consolidated balance sheets include a substantial amount of assets and liabilities whose fair values are subject to market risk. The term market risk refers to the risk of loss arising from adverse changes in interest rates, credit spreads, equity 87 markets prices, and other relevant market rates and prices.
Item 8. Financial Statements and Supplementary Data See our consolidated financial statements and notes thereto and required financial statement schedules commencing on page F-1. Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure Not applicable. 93
Financial Statements and Supplementary Data See our consolidated financial statements and notes thereto and required financial statement schedules commencing on page F-1. Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure Not applicable.
We generally manage the interest rate risk associated with our portfolio of fixed income investments by monitoring the average of investment-grade corporate securities; U.S. government and agency securities; foreign government, agency and provincial obligations; preferred stocks; asset-backed and mortgage-backed securities; and municipal obligations.
We manage the interest rate risk associated with our portfolio of fixed income investments by matching asset backing reserves with that of our economic liabilities, in addition to monitoring the average of investment-grade corporate securities; U.S. government and agency securities; foreign government, agency and provincial obligations; preferred stocks; asset-backed and mortgage-backed securities; and municipal obligations.
Due to our sizable investment portfolio, market risk can have a significant effect on our consolidated financial position. We believe we are principally exposed to the following types of market risk: ▪ interest rate risk; ▪ foreign currency exchange risk; and ▪ other long-term investments price risk.
Due to our sizable investment portfolio, market risk can have a significant effect on our consolidated financial position. We believe we are principally exposed to the following types of market risk: ▪ interest rate risk; and ▪ foreign currency exchange risk. Interest Rate Risk Interest rate risk is the price sensitivity of a security to changes in interest rates.
Interest Rate Risk Interest rate risk is the price sensitivity of a security to changes in interest rates. Our investment portfolio includes fixed income investments, whose fair values will fluctuate with changes in interest rates. Increases and decreases in prevailing interest rates generally translate into decreases and increases in fair values of fixed income investments, respectively.
Our investment portfolio includes fixed income investments, whose fair values will fluctuate with changes in interest rates. Increases and decreases in prevailing interest rates generally translate into decreases and increases in fair values of fixed income investments, respectively.
Foreign currency exchange-rate risk is the risk that we will incur losses on a U.S. dollar basis due to adverse changes in foreign currency exchange rates.
Non-U.S. dollar denominated foreign revenues and expenses are valued using average exchange rates over the period. Foreign currency exchange-rate risk is the risk that we will incur losses on a U.S. dollar basis due to adverse changes in foreign currency exchange rates.
The following table summarizes the estimated effects of hypothetical increases and decreases in market interest rates on our debt securities as of December 31, 2023: Fair value Assumed change in interest rate Estimated fair value after change in interest rate Pre-tax increase (decrease) in carrying value ($ in millions) Debt securities $ 5,290.3 300 bp decrease $ 5,723.7 $ 433.4 200 bp decrease 5,579.3 289.0 100 bp decrease 5,434.8 144.5 50 bp decrease 5,362.6 72.3 50 bp increase 5,215.4 (74.9) 100 bp increase 5,140.4 (149.9) 200 bp increase 4,990.5 (299.8) 300 bp increase $ 4,840.6 $ (449.7) The magnitude of the fair value decrease in rising rates scenarios may be more significant than the fair value increase in comparable falling rates scenarios.
The following table summarizes the estimated effects of hypothetical increases and decreases in market interest rates on our debt securities as of December 31, 2024: Fair value Assumed change in interest rate Estimated fair value after change in interest rate Pre-tax increase (decrease) in carrying value ($ in millions) Debt securities $ 5,293.2 300 bp decrease $ 5,674.4 $ 381.2 200 bp decrease 5,542.2 249.0 100 bp decrease 5,410.1 116.9 50 bp decrease 5,344.1 50.9 50 bp increase 5,197.4 (95.8) 100 bp increase 5,116.7 (176.5) 200 bp increase 4,955.5 (337.7) 300 bp increase $ 4,794.3 $ (498.9) The magnitude of the fair value decrease in rising rates scenarios may be more significant than the fair value increase in comparable falling rates scenarios.
Market prices of the underlying investment securities, in general, are subject to fluctuations. Assuming a hypothetical 10% and 30% increase or decrease in the value of our investments in related party investment funds as of December 31, 2023 , the carrying value of these investments would have increased or decreased by approximately $10.6 million and $31.7 million, pre-tax, respectively.
Assuming a hypothetical 10% and 30% increase or decrease in the value of our investments in related party investment funds as of December 31, 2024 , the carrying value of these investments would have increased or decreased by approximately $11.7 million and $35.0 million, pre-tax, respectively. 88 Foreign Currency Exchange Risk In the ordinary course of business, we hold non-U.S. dollar denominated assets and liabilities, which are valued using period-end exchange rates.
Removed
Foreign Currency Exchange Risk In the ordinary course of business, we hold non-U.S. dollar denominated assets and liabilities, which are valued using period-end exchange rates. Non-U.S. dollar denominated foreign revenues and expenses are valued using average exchange rates over the period.
Added
Market prices of the underlying investment securities, in general, are subject to fluctuations.
Removed
The fair values of these investments are subject to fluctuations. These fluctuations could cause the amount realized upon sale or exercise of these instruments to differ significantly from the current reported value. The fluctuations may result from perceived changes in the underlying economic characteristics of the investment or other market factors, including interest rates and foreign exchange.
Removed
Assuming a hypothetical 10% and 30% increase or decrease in the value of our other long-term investments as of December 31, 2023 , the carrying value of our other long-term investments would have increased or decreased by approximately $30.9 million and $92.6 million, pre-tax, respectively.

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